United States Senator Bill Nelson has announced legislation that would offer
major tax and other incentives to encourage growth in the private space exploration
industry.
Nelson's plan would create up to five regional business enterprise zones around
the country as "magnets for commercial space ventures."
As it grapples with record federal deficits, the Obama administration no longer
perceives the funding of space exploration a priority and is cancelling the
space shuttle program. One more shuttle flight is scheduled for next year after
the Senate approved a bill to provide additional funding to the program, but
a cloud of uncertainty currently hangs over the US space industry, not to mention the hundreds of high technology firms supplying equipment to the US space program.
Nelson's bill, known as the Commercial Space Jobs and Investment Act of 2010
would create a new 'commercial space capital formation credit' allowing investors
to claim a tax credit worth 20% of their equity investment in a business producing
equipment such as launch vehicles and re-entry vehicles. The equity investment
would have to be held for a minimum of five years for the investor to qualify for
the tax credit.
The bill would also give the Secretary of Commerce authority to designate up
to five 'Commercial Space Enterprise Zones' in areas suffering from high unemployment
or economic dislocation. Companies established in these zones would be entitled
to an enhanced research and development tax credit of 30% (instead of 20%) and
could claim a special depreciation allowance on 'qualified commercial space
property.'
Nelson, a Florida Democrat, says that his proposals would attract jobs to areas
where there are lots of scientists and engineers, especially near places where
the space exploration is already well established, such as Florida's Kennedy
Space Center (KSC).
“President Kennedy was right when he predicted that space exploration
would create a great number of new companies and strengthen our economy,”
Nelson said. “What we’re doing now is everything we can to ensure
KSC’s continued importance to our nation’s space exploration effort,
while also broadening the economic opportunities along our Space Coast.”
Frank DiBello, President of Space Florida said that Nelson's proposals represent
"a significant step forward in ensuring the right incentives are in place
to attract industry to Florida, and the broader domestic marketplace."
"This bill will stimulate the commercial space industry to create jobs
in our state, at a time when we need it most," he added.
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