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.