Proposed California Tax Break Would Benefit SpaceX, Space Companies

Falcon 9 lifts off from Vandenberg Air Force Base. (Credit: SpaceX)
Falcon 9 lifts off from Vandenberg Air Force Base. (Credit: SpaceX)

The California State Assembly passed a 10-year tax exemption on Wednesday that would exempt SpaceX and other commercial space companies in the state from paying property taxes on their spacecraft and properties.

“With this bill, California can incubate and grow this exciting new industry and create thousands of good paying manufacturing jobs right here in our state,” said state Assemblyman Al Muratsuchi (D-Torrance), who authored the bill.

“I introduced this bill to clarify the tax code as it relates to this new industry so that companies like SpaceX can have the legal certainty they need to make major infrastructure investment decisions and avoid unnecessary litigation,” he added.

The measure will now go to the State Senate.

  • mmealling

    10 years? That’s ‘certainty’? Sorry guys, too little, too late.

  • Hug Doug

    … imagine what SpaceX could do in the next 10 years…

  • windbourne

    ideally, there will be spin-offs as well. To be fair, as these ppl re-learn how to manufacture, it makes good sense to have other companies come and pick up workers.
    So, it actually IS worth doing that.

  • Aerospike

    too little, too late for what?

  • mmealling

    To keep the company’s there that are leaving. If you hadn’t noticed Mojave is getting a little empty.

  • Hug Doug

    The Mojave is nice for flight testing… but this tax break is for manufacturing, and SpaceX’s assembly line is in Hawthorne.

  • Douglas Messier

    The Spaceship Company is manufacturing vehicles in Mojave. As is Stratolaunch.

  • Hug Doug

    I had no idea! Well, they get to benefit from this tax break too, and I only know about SpaceX because i live nearby 🙂

  • Stuart

    So who is likely to relocate to California with this tax incentive? Indeed please forgive my ignorance but how many “space” businesses already operate in California?

  • windbourne

    All major aviation/space have some form a factory or design place here OR in nevada, OR HAD one there. Realistically, CA was much of the birth place for aviation and space. Skunkworks comes quickly to mind.
    For the last 10 years, CA has ran massive deficits due to in-fighting between their state congress and governors. Then add in loads of illegals who are not paying taxes which only adds to the spending, but not revenue.
    Nobody wants to work in that environment. However, they have turned it around WRT deficits and are now running surplus. It remains to be seen what they will do (pay down debt or spend away).

    Basically, CA is still a very desirable place for space and manufacturing, assuming that taxes are controlled.

  • Aerospike

    Ah, my bad! I had a really stupid “derp” moment yesterday: while I was reading California, for some reason I was thinking Florida…
    Guess I shouldn’t read/post late at night 😉