Bill Extends Sale And Use Tax Exemptions To Facilities Designed To Launch And Operate Space Vehicles

The American Institute of Aeronautics and Astronautics (AIAA) has endorsed California Senate Bill 19, “The Space Flight Sales Tax Exemption Act.” The bill, sponsored by Republican Sen. Steve Knight, would give sale and use tax exemptions to equipment and materials used to construct facilities designed to launch and operate space vehicles.

“With threats growing daily to the vibrant aerospace sector of California’s economy, AIAA and its members endorse the passage of California State Senate Bill 19, ‘The Space Flight Sales Tax Exemption.’ This bill promises to alleviate some of the conditions that have hampered growth in this vital sector of California’s economy, and will allow aerospace firms in California to keep their high-paying jobs in the state," said AIAA President Mike Griffin stated. "The bill also promises to spur innovation throughout the state, as it creates the incentive for companies that have not yet entered the aerospace marketplace to get into the market. The California aerospace sector is one of the main pillars of both the California economy and our nation’s economy, and passage of Senate Bill 19 will ensure that that pillar is a strong one for years to come.”

The Space Flight Sales Tax Exemption Act expands the current tax exemptions in the California code, which are extended to “the gross receipts from the sale of, and the storage, use, or other consumption of, qualified property for use in space flight,” and expands those exemptions to “also include equipment and materials used to construct, reconstruct, or improve new or existing facilities designed to operate, launch, manufacture, fabricate, assemble, or process equipment that facilitates the renovation, rehabilitation, or reconstruction of commercial space launch sites.”

FMI: www.aiaa.org