242.
(a) There is exempted from the taxes imposed by this part qualified property for use in used for space flight. flight activities.(b) For purposes of this section:
(1) “Qualified property” means any of the following:
(A) Tangible personal property, whether raw
materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, space any of the following:
(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.
(ii) A
role as ground support infrastructure for space flight launch preparation and operations, including, but not limited to, any of the following:
(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.
(II) Housing data and communication support systems.
(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.
(iii) A role in testing space flight engines and components at a test site, including, but not limited to, any of the following:
(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all
propellant and commodity delivery systems.
(II) Instrumentation, command, and control systems for operating test stands.
(III) Environmental protection, safety, and occupational health equipment.
(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.
(2) “Space flight” means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.
(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite,
space facility, or space station of any kind, or the destruction of any launch vehicle vehicle or ground support infrastructure,
or any component thereof, but the exemption shall not
apply to any material that is not intended to be launched into space. of a launch vehicle or ground support infrastructure.
(d) This section shall be operative from the January 1, 2014, lien date to, and
including, the January 1, 2024, lien date, and is inoperative for any and for every lien date thereafter.
(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).
(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.
(g)This section shall remain in effect only until
July 1, 2025, and as of that date is repealed.
(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter.