Summary#
This bill amends the Internal Revenue Code to clarify how the advanced manufacturing investment credit applies to semiconductor manufacturing facilities located in outer space. It adds rules saying which property counts as "qualified property" for the credit when a facility is in outer space, and it adds related special rules in section 50(b).
Key points in the bill text:
- Property used to transport crew, goods, equipment, material, or supplies to and from a space-based facility will not be excluded from being treated as part of the facility just because it is used for transport or is not located in outer space.
- Property that is located in outer space may be treated as qualified property for the credit.
- Property can still be treated as integral to the operation of the facility even if it is used for transport or not located in outer space.
- Functions counted as related to manufacturing include flight control operations, crew habitation in outer space, repair of the facility, and transportation of crew, goods, equipment, material, or supplies to and from the facility.
- The bill defines "outer space" to include low-Earth orbit.
- The term "qualified property" explicitly excludes rockets or similar launch vehicles built to propel a payload from Earth into outer space.
- Section 50(b) is amended to treat qualified property that is part of a space-based advanced manufacturing facility in certain ways, including property held by a United States person if that property was launched from within the United States.
- The amendments apply to property placed in service after the date the bill becomes law.
- The bill says it does not create any inference about credit allowance for facilities located in outer space on or before the date of enactment.
What it means for you#
- For companies building semiconductor facilities in space: the bill clarifies what kinds of equipment and support property can count for the advanced manufacturing investment credit. Some support equipment and transport-related property can be treated as part of the facility.
- For taxpayers and accountants: the bill gives specific definitions and examples to help decide whether property used for space-based semiconductor manufacturing qualifies for the tax credit.
- For launch providers: rockets and similar launch vehicles are excluded from qualified property under this credit. The bill also notes a special rule when property is held by a U.S. person and was launched from within the United States.
- Timing: the rules apply only to property placed in service after the bill becomes law.
Expenses#
No publicly available information on estimated budgetary costs, revenue effects, or federal spending changes is included in the bill text or provided metadata.
Proponents' View#
No publicly available information in the bill text sets out proponents' arguments. The bill was introduced by Representatives Vern Buchanan, Terri Sewell, and Suzan DelBene, with additional sponsors W. Steube and Carol Miller.
Opponents' View#
No publicly available information in the bill text describes opponents' arguments or objections.