Sunday, August 22, 2010

Nelson wants tax breaks for space industry

U.S. Sen. Bill Nelson wants to create five business enterprise zones around the country, most likely in places that already have NASA centers, where investors who put their money in commercial space ventures would get major tax breaks.

The Florida Democrat will show legislation Tuesday that would give tax breaks worth 20 percent of their outlays to investors in private space-related businesses. The Commercial Space Jobs and Investment Act would help attract engineers and scientists to the zones and create jobs in a space industry facing uncertainty, Nelson said.

Nelson's bill would amend the 1986 tax code to give investors a credit worth 20 percent of their investment in businesses that create launch vehicles, re-entry vehicles, related equipment or are part of those operations. The investment would have to be for no less than five years.

The bill also would raise a tax credit for research and development in these zones from 20 percent to 30 percent if it is conducted on space-related tests in those enterprise zones.

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