Tax Incentives Proposed for Commercial Space

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WASHINGTON — U.S. Sen. Bill Nelson (D-Fla.) announced legislation Aug. 17 that would provide tax breaks for investors and companies seeking to develop commercial spacecraft for transporting astronauts to orbit.

Dubbed the Commercial Space Jobs and Investment Act, the measure also would create up to five regional business enterprise zones around the United Statesintended to draw commercial space ventures and create employment opportunities in areas expected to lose jobs when the space shuttle is retired next year, according to an Aug. 17 news release issued by Nelson’s office.

“President Kennedy was right when he predicted that space exploration would create a great number of new companies and strengthen our economy,” said Nelson, whose state is home to NASA’s Kennedy Space Center (KSC). ”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.”

Nelson announced the legislation the same day NASA and the U.S. Commerce Department sent the White House a 24-page report outlining plans for spending a proposed $40 million to spur job growth in Florida and other states affected by the space shuttle’s retirement.

Led by Commerce Secretary Gary Locke and NASA Administrator Charles Bolden, the President’s Task Force on Space Industry Workforce and Economic Development recommended, among other initiatives, a $5 million effort to launch a new Commercial Spaceflight Technical Center at KSC that could provide safety and technical support for future commercial space launch activities.

Earlier this month, the U.S. Senate approved NASA authorizing legislation that recommends funding infrastructure modernization efforts at KSC as well as a new heavy-lift rocket development that could keep elements of the space shuttle work force employed. Shaped by Nelson and other lawmakers with a stake in NASA’s manned spaceflight programs, the Senate-approved plan also provides enough money for an additional space shuttle flight next June.