American Space Commerce Act of 2021
This bill allows a special allowance for bonus depreciation for qualified domestic space launch property and extends the termination of such allowance until the end of 2032. The bill defines qualified domestic space launch property as property placed in service before January 1, 2033, that is (1) a space transportation vehicle or payload that is launched from the United States, or (2) other property or equipment placed in service to facilitate a space launch from the United States.
To amend the Internal Revenue Code of 1986 to provide bonus 
   depreciation for certain space launch expenditures, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Space Commerce Act of 
2021''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States is the only nation with a competitive 
        commercial space launch industry.
            (2) A robust domestic launch industry and capability is 
        crucial to the United States' continuing economic, national 
        security, scientific, and exploration leadership.
            (3) Commercial space launch vehicles manufactured and 
        launched in the United States by United States launch service 
        providers benefit national security and the national economy, 
        earth and space science, and human spaceflight, and are 
        enablers of the global space economy.
            (4) Commercial space launch vehicles manufactured and 
        launched in the United States by United States launch service 
        providers are used for virtually all United States national 
        security payloads, and therefore, are indispensable to the 
        security of the United States, as well as its allies and 
        friends.
            (5) Multiple American companies are developing small launch 
        vehicles to compete in the domestic and international 
        commercial launch market. These companies are financed 
        predominately by private capital, are independently developing 
        capabilities, and are primarily serving commercial customers.
            (6) Several foreign governments have taken notice of U.S. 
        market growth and have begun to fund their own vehicles to 
        compete within the same market. While some of these 
        international vehicles are putatively ``private,'' most benefit 
        from subsidies or developmental support from their national 
        governments.
            (7) The 2019 Report to Congress of the United States-China 
        Economic and Security Review Commission stated, ``China is 
        taking steps to establish a commanding position in the 
        commercial launch and satellite sectors relying in part on 
        aggressive state-backed financing that foreign market-driven 
        companies cannot match''.
            (8) The report further adds, ``China has already succeeded 
        in undercutting some U.S. and other foreign launch and 
        satellite providers in the international market, threatening to 
        hollow out these countries' space industrial bases''.
            (9) China announced a plan to advance its Space ambitions 
        by creating a Space Economic Zone to generate $10 trillion 
        annually.
            (10) The U.S. commercial launch industry, whose viability 
        the National Aeronautics and Space Administration and the 
        Department of Defense depend on to launch critical national 
        assets, is forced to compete with state-backed launch 
        enterprises across the globe whose launch providers are not 
        required to be profitable.
            (11) A strong domestic space launch industry is in the 
        national security interest of the United States.
            (12) Foreign launch providers are heavily subsidized by 
        their governments and use these subsidies to intentionally 
        price below cost in an effort to undercut American competition, 
        materially harming the American industrial base.
            (13) Increased use of United States-manufactured commercial 
        launch vehicles launched in the United States by United States 
        launch service providers should be encouraged.
            (14) Congress supports continued United States leadership 
        in space.

SEC. 3. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.

    (a) Allowance of Bonus Depreciation for Qualified Domestic Space 
Launch Property.--Section 168(k)(2)(A) of the Internal Revenue Code of 
1986 is amended in clause (i), by striking ``or'' at the end of 
subclause (III), by striking ``or'' at the end of subclause (IV), by 
adding ``or'' at the end of subclause (V), and by adding at the end the 
following new subclause:
                                    ``(VI) which is qualified domestic 
                                space launch property (as defined in 
                                paragraph (11)),''.
    (b) Extension of Termination of Bonus Depreciation for Qualified 
Domestic Space Launch Property.--
            (1) In general.--Section 168(k)(2)(A)(iii) of the Internal 
        Revenue Code of 1986 is amended by striking ``before January 1, 
        2027.'' and inserting ``before January 1, 2027 (in the case of 
        qualified domestic space launch property, before January 1, 
        2033).''.
            (2) Application of applicable percentage.--Section 
        168(k)(6) of such Code is amended by adding at the end the 
        following new subparagraph:
                    ``(D) Rule for qualified domestic space launch 
                property.--Notwithstanding any other provisions of this 
                paragraph, in the case of any qualified property which 
                is qualified domestic space launch property, the term 
                `applicable percentage' means, in the case of property 
                placed in service after December 31, 2023, and before 
                January 1, 2033, 100 percent.''.
    (c) Qualified Domestic Space Launch Property Defined.--Section 
168(k) of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(11) Qualified domestic space launch property defined.--
        For purposes of this subsection--
                    ``(A) In general.--The term `qualified domestic 
                space launch property' means property placed in service 
                before January 1, 2033, that is--
                            ``(i) a space transportation vehicle or 
                        payload (as such terms are defined in section 
                        50101 of title 51, United States Code) that is 
                        launched from the United States, or
                            ``(ii) other property or equipment placed 
                        in service for the purpose of facilitating a 
                        space launch from the United States.
                    ``(B) Special rule for space launches from 
                aircraft.--A space transportation vehicle or payload 
                that is launched from an aircraft shall be considered 
                to be launched from the United States if, and only if, 
                such space transportation vehicle or payload is--
                            ``(i) substantially manufactured within the 
                        United States, as determined by the Secretary, 
                        and
                            ``(ii) launched from an aircraft on a 
                        flight that originated from United States soil.
                    ``(C) United states.--The term `United States' 
                includes the possessions of the United States.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2023.
                                 <all>
American Space Commerce Act of 2021
To amend the Internal Revenue Code of 1986 to provide bonus depreciation for certain space launch expenditures, and for other purposes.
American Space Commerce Act of 2021
Rep. Posey, Bill