Lackey Introduces Tax Break for California Space Transportation Companies

Tom Lackey

by Douglas Messier
Managing Editor

California Assemblyman Tom Lackey (R-Palmdale) has introduced a bill last week that would exempt space transportation companies within the state from a new income tax.

“Recently, the California Franchise Tax Board created a tax on all space travel that launches from California,” Lackey said. “This increased financial strain on space travel will put California space companies at a disadvantage….It’s imperative that we keep the California space industry thriving in our state because it holds a huge potential for jobs and economic growth.”

The measure defines space transportation activity as “the movement or attempted movement of people or property, including without limitation, launch vehicles, satellites, payloads, cargo, refuse, or any other property to space.” Space is defined as being 62 statute miles or higher.

A space transportation company is defined as making”more than 50 percent of its gross receipts from the provision of space transportation activities for compensation in a taxable year.”

Lackey Bill Calls for California Institute for Aerospace in Antelope Valley

Tom Lackey

by Douglas Messier
Managing Editor

A bill introduced by State Assemblyman Tom Lackey (R-Palmdale) calls for the establishment of the California Institute of Aerospace in the Antelope Valley to promote the industry throughout the state.

Under the measure, the University of California would establish the institute on a satellite campus located within 20 miles of either Edwards Air Force Base or the United States Air Force Plant 42 in Palmdale. The institute would be located within the 36th District that Lackey represents.

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California Legislature Guts Knight’s Informed Consent Law

State Sen. Steve Knight
State Sen. Steve Knight

An effort by State Sen. Steve Knight to extend liability protections to spaceflight providers and spacecraft manufacturers, equipment suppliers, and service providers is failing in the California Legislature.

The Senate has removed language from the measure that would have required that a spaceflight provider to enter into “a reciprocal waiver of claims with its contractors, subcontractors, customers, participants, and contractors and subcontractors of the customers or participants, as specified.”

The reciprocal waiver language was a substitute for an original provision in the bill that would have expanded the definition of a spaceflight entity to include “a manufacturer or supplier of components, services, or vehicles.” The Senate had earlier removed that language from the measure.

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