,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fghc ,,in ,,the ,,house ,,of ,,representatives ,may #h1 #bjbj,mr4 ,posey 7for himself and ,mr4 ,crist7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide bonus depreciation for certain space launch expenditures1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,space ,commerce ,act of #bjbj4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,united ,states is the only nation with a competitive commercial space launch industry4 7#b7 ,a robust domestic launch industry and capability is crucial to the ,united ,states continuing economic1 national security1 scientific1 and exploration leadership4 7#c7 ,commercial space launch vehicles manufactured and launched in the ,united ,states by ,united ,states launch service providers benefit national security and the national economy1 earth and space science1 and human spaceflight1 and are enablers of the global space economy4 7#d7 ,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 payloads1 and therefore1 are indispensable to the security of the ,united ,states1 as well as its allies and friends4 7#e7 ,multiple ,american companies are developing small launch vehicles to compete in the domestic and international commercial launch market4 ,these companies are financed predominately by private capital1 are independently developing capabilities1 and are primarily serving commercial customers4 7#f7 ,several foreign governments have taken notice of ,u4,s4 market growth and have begun to fund their own vehicles to compete within the same market4 ,while some of these international vehicles are putatively 8private01 most benefit from subsidies or developmental support from their national governments4 7#g7 ,the #bjai ,report to ,congress of the ,united ,states-,china ,economic and ,security ,review ,commission stated1 ,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 match4 7#h7 ,the report further adds1 ,china has already succeeded in undercutting some ,u4,s4 and other foreign launch and satellite providers in the international market1 threatening to hollow out these countries' space industrial bases4 7#i7 ,china announced a plan to advance its ,space ambitions by creating a ,space ,economic ,zone to generate #aj trillion annually4 7#aj7 ,the ,u4,s4 commercial launch industry1 whose viability the ,national ,aeronautics and ,space ,administration and the ,department of ,defense depend on to launch critical national assets1 is forced to compete with state-backed launch enterprises across the globe whose launch providers are not required to be profitable4 7#aa7 ,a strong domestic space launch industry is in the national security interest of the ,united ,states4 7#ab7 ,foreign launch providers are heavily subsidized by their governments and use these subsidies to intentionally price below cost in an effort to undercut ,american competition1 materially harming the ,american industrial base4 7#ac7 ,increased use of ,united ,states-manufactured commercial launch vehicles launched in the ,united ,states by ,united ,states launch service providers should be encouraged4 7#ad7 ,congress supports continued ,united ,states leadership in space4 #c4 ,special allowance for qualified domestic space launch property 7a7 ,allowance of bonus depreciation for qualified domestic space launch property ,section #afh7k77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended in clause 7i71 by striking or at the end of subclause 7,,iii71 by striking or at the end of subclause 7,,iv71 by adding or at the end of subclause 7,v71 and by adding at the end the following new subclause3 7,,vi7 which is qualified domestic space launch property 7as defined in paragraph 7#aa771 4 7b7 ,extension of termination of bonus depreciation for qualified domestic space launch property 7#a7 ,in general ,section #afh7k77#b77;,a77iii7 of the ,internal ,revenue ,code of #aihf is amended by striking before ,january #a1 #bjbg4 and inserting before ,january #a1 #bjbg 7in the case of qualified domestic space launch property1 before ,january #a1 #bjcc744 7#b7 ,application of applicable percentage ,section #afh7k77#f7 of such ,code is amended by adding at the end the following new subparagraph3 7,d7 ,rule for qualified domestic space launch property ,notwithstanding any other provisions of this paragraph1 in the case of any qualified property which is qualified domestic space launch property1 the term applicable percentage means1 in the case of property placed in service after ,december #ca1 #bjbc1 and before ,january #a1 #bjcc1 #ajj percent4 4 7c7 ,qualified domestic space launch property defined ,section #afh7k7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#aa7 ,qualified domestic space launch property defined ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified domestic space launch property means property placed in service before ,january #a1 #bjcc1 that is-- 7i7 a space transportation vehicle or payload 7as such terms are defined in section #ejaja of title #ea1 ,united ,states ,code7 that is launched from the ,united ,states1 or 7ii7 other property or equipment placed in service for the purpose of facilitating a space launch from the ,united ,states4 7,b7 ,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 if1 and only if1 such space transportation vehicle or payload is-- 7i7 substantially manufactured within the ,united ,states1 as determined by the ,secretary1 and 7ii7 launched from an aircraft on a flight that originated from ,united ,states soil4 7,c7 ,united ,states ,the term ,united ,states includes the possessions of the ,united ,states4 4 7d7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbc4