California State Senator Steven Knight (the son of X-15 pilot Pete Knight) has introduced a bill that grants a sales-tax exemption for spaceflight equipment and materials.

Senate Bill 19, the Space Flight Sales Tax Exemption Act, provides an exemption for “the gross receipts from the sale of, and the storage, use, or other consumption of, qualified property for use in space flight.”

The exemption also includes “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.”

The bill, which has been endorsed by the American Insitute of Aeronautics and Astronautics, is intended to improve California’s business requirement, which has caused companies such as Raytheon Space and Airborne Systems and XCOR Aerospace to leave California. Whether it will be sufficient remains to be seen.

Written by Astro1 on May 26th, 2013 , Space Policy and Management, Spaceports

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    Charles Pooley commented

    An alternative to hoping this passes is to move to Nevada, as Microlaunchers has.
    The overall business climate in California has been getting too hostile for small startups.

    California is in very deep trouble. I’ve seen this since moving there in 1966.

    May 27, 2013 at 10:19 am