12.10.2007
Zero G, Zero Tax in Virginia
Virginia is at it again, moving forward with proposed ground-breaking new space law designed to boost commercial space industry. And what better way to encourage business than new tax breaks and incentives. As my pal Jack Kennedy reports over on Spaceports blog, Virginia's Zero G, Zero Tax proposal is on the agenda for endorsement today by the Virginia Joint Commission on Technology and Science (JCOTS).
In a nutshell, the proposed bill, would "exempt state taxation on gross income earned from commercial spaceflight launches from the Mid-Atlantic Regional Spaceport and income gained from spaceflight training activities from a Virginia airport or spaceport."
Here are the provisions (see bluelining on pages 7 and 22-23), (and yes some of the language initially appeared in an earlier draft of the historic Virginia Spaceflight Liability and Immunity Act which became law July 1 of this year):
Another first of its kind piece of state space legislation.
Jack notes lawmakers who have agreed to back the proposal include House of Delegates democratic and republican caucus chairs, members of the House Finance Committee, as well as folks on the Virginia Aerospace Advisory Council. Going forward he says the bill is expected to be refered to the House Finance Committee for a hearing and an initial vote in late January. Thanks, Jack. And we will certainly continue to keep an eye on far-sighted pro-space lawmaking over in the Commonwealth.
In a nutshell, the proposed bill, would "exempt state taxation on gross income earned from commercial spaceflight launches from the Mid-Atlantic Regional Spaceport and income gained from spaceflight training activities from a Virginia airport or spaceport."
Here are the provisions (see bluelining on pages 7 and 22-23), (and yes some of the language initially appeared in an earlier draft of the historic Virginia Spaceflight Liability and Immunity Act which became law July 1 of this year):
33. For taxable years beginning on and after January 1, 2009, any gain recognized from the sale of launch services to space flight participants, as defined in 49 U.S.C. § 70102, or launch services intended to provide individuals the training or experience of a launch, without performing an actual launch. To qualify for a deduction under this subdivision, launch services must be performed in Virginia or originate from an airport or spaceport in Virginia.
34. For taxable years beginning on and after January 1, 2009, any gain recognized as a result of 169 resupply services contracts for delivering payload, as defined in 49 U.S.C. § 70102, entered into with the Commercial Orbital Transportation Services division of the National Aeronautics and Space Administration or other space flight entity, as defined in § 8.01-227.8, and launched from an airport or spaceport in Virginia.
22. For taxable years beginning on and after January 1, 2009, any gain recognized from the sale of launch services to space flight participants, as defined in 49 U.S.C. § 70102, or launch services intended to provide individuals the training or experience of a launch, without performing an actual launch. To qualify for a deduction under this subdivision, launch services must be performed in Virginia or originate from an airport or spaceport in Virginia.
23. For taxable years beginning on and after January 1, 2009, any gain recognized as a result of resupply services contracts for delivering payload, as defined in 49 U.S.C. § 70102, entered into with the Commercial Orbital Transportation Services division of the National Aeronautics and Space Administration or other space flight entity, as defined in § 8.01-227.8, and launched from an airport or spaceport in Virginia.
Another first of its kind piece of state space legislation.
Jack notes lawmakers who have agreed to back the proposal include House of Delegates democratic and republican caucus chairs, members of the House Finance Committee, as well as folks on the Virginia Aerospace Advisory Council. Going forward he says the bill is expected to be refered to the House Finance Committee for a hearing and an initial vote in late January. Thanks, Jack. And we will certainly continue to keep an eye on far-sighted pro-space lawmaking over in the Commonwealth.
