Spaceports Are Treated Like Airports under Exempt Facility Bond Rules
Section 70309 · Sec. 70309 ·
What this chapter is about
This part puts spaceports on the same footing as airports for tax free bonds. It defines a spaceport for the first time. A spaceport need not be open to the public. The change reaches bonds issued after this law passed.
“Section 142(a)(1) is amended to read as follows: "(1) airports and spaceports,".”
The section rewrites section 142(a)(1) of the Internal Revenue Code of 1986 so that the first category of exempt facility reads airports and spaceports.
What the document actually says
“Section 142(a)(1) is amended to read as follows: "(1) airports and spaceports,".”
That sentence, in plain words
One item on a list is rewritten. It now reads airports and spaceports.
What this is about
The list names facilities that may use tax free bonds. Airports were already on it. Spaceports are now added.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70309 in the PDF
What the document says
“spaceport property located on land leased by a governmental unit from the United States shall not fail to be treated as owned by a governmental unit if the requirements of this paragraph are met by the lease and any subleases of the property.”
The section adds a new subparagraph (C) to section 142(b)(1) of the Internal Revenue Code of 1986 so that spaceport property on land a governmental unit leases from the United States is still treated as owned by a governmental unit, where the lease and any subleases meet the paragraph's requirements.
What the document actually says
“spaceport property located on land leased by a governmental unit from the United States shall not fail to be treated as owned by a governmental unit if the requirements of this paragraph are met by the lease and any subleases of the property.”
That sentence, in plain words
A spaceport on leased federal land still counts as government owned. The lease and any subleases must meet the rules.
What this is about
Many launch sites sit on federal land. A lease alone would not normally count as owning. This rule says it does here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“the term `spaceport' means any facility located at or in close proximity to a launch site or reentry site used for--”
The section adds a new subsection (p) to section 142 of the Internal Revenue Code of 1986 defining a spaceport as a facility at or near a launch site or reentry site used for making, assembling or repairing spacecraft, space cargo or their components, for flight control operations, for providing launch and reentry services, or for moving crew, spaceflight participants or space cargo to or from spacecraft. Space cargo includes satellites, scientific experiments and any other payload whether or not it returns. A spacecraft is a launch vehicle or a reentry vehicle. Other terms take the meanings given in section 50902 of title 51, United States Code as in effect at enactment.
What the document actually says
“the term `spaceport' means any facility located at or in close proximity to a launch site or reentry site used for--”
That sentence, in plain words
The term covers a site at or near a launch site. It also covers a site near a landing site. The list that follows says what it is used for.
What this is about
Four uses are named. One is building or fixing spacecraft. One is flight control. One is running launches and landings. One is moving crew or cargo.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70309 in the PDF
What the document says
“A facility shall not be required to be available for use by the general public to be treated as a spaceport for purposes of this section.”
The section provides that a facility need not be open to the general public to count as a spaceport, and that the bar in subsection (c)(2)(E) on manufacturing facilities and industrial parks does not apply to spaceport property used for making, assembling or repairing spacecraft and related items.
What the document actually says
“A facility shall not be required to be available for use by the general public to be treated as a spaceport for purposes of this section.”
That sentence, in plain words
A site need not be open to the public. It still counts as a spaceport.
What this is about
Airports are usually open to all. Spaceports are not held to that. A bar on factories also does not apply here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70309 in the PDF
What the document says
“A bond shall not be treated as federally guaranteed merely because of the payment of rent, user fees, or other charges by the United States (or any agency or instrumentality thereof) in exchange for the use of the spaceport”
The section adds a new subparagraph (F) to section 149(b)(3) of the Internal Revenue Code of 1986 so that a bond is not treated as federally guaranteed just because the United States or one of its agencies pays rent, user fees or other charges to use the spaceport.
What the document actually says
“A bond shall not be treated as federally guaranteed merely because of the payment of rent, user fees, or other charges by the United States (or any agency or instrumentality thereof) in exchange for the use of the spaceport”
That sentence, in plain words
A bond does not count as federally backed for one reason alone. That reason is the government paying rent or fees to use the spaceport.
What this is about
A federally backed bond loses its tax break. Federal use of the site would otherwise risk that. This rule removes the risk.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70309 in the PDF
What the document says
“The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.”
The section applies its amendments to obligations issued after the date of enactment.
What the document actually says
“The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.”
That sentence, in plain words
The changes reach bonds issued after this law passed.
What this is about
Bonds issued before then are not touched. The old rules still hold for them. The date is the day this law passed.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: add spaceports to the list of exempt facilities, allow a government ground lease from the United States, define a spaceport and the terms it uses, drop the public use requirement and allow manufacturing facilities, carve spaceports out of the federally guaranteed bond bar, and fix the effective date.
The conforming change to a subsection heading.
The section works by amending sections 142 and 149 of the Internal Revenue Code of 1986 and takes several terms from section 50902 of title 51, United States Code, neither of which is indexed here.
