California proposes taxes on commercial space companies

We’re here to help you! The Franchise Tax Board of California has proposed new regulations that would allow the state to tax commercial launch companies.

You can read the full proposal here [pdf].

The rules are designed to apply to any company operating in California that generates at least half the money it takes in from “space transportation” — defined as the movement of people or property 62 miles above the surface of the Earth. That’s the internationally recognized line that separates our planet from the rest of space. It would apply to companies that use California as a launchpad, not California companies launching from other states, like Texas or Florida.

Essentially, they will tax any launch from Vandenberg, basing the tax on the distance the payload flies while still attached to the rocket and still the responsibility of the launch provider.

This is essentially a tax on SpaceX, since they are California’s only major launch company. This is also a tax on Vandenberg, the only spaceport in the state. The result? Expect future companies to flee California. Expect new spaceports to spring up elsewhere. As noted in the article:

At least one company has already been lured away from California for the promise of greater financial incentives — though of a more earthly variety. Moon Express, a company working to mine the moon for natural resources, moved from Mountain View to Florida. In an email, the company’s CEO and founder, Bob Richards, said the company “relocated from California to Florida in part due to the State of Florida’s progressive economic development incentives designed to attract commercial space companies

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NASA looks to private companies for lunar missions

Capitalism in space: NASA has issued a request for information on possible private commercial missions capable of carrying NASA payloads to the Moon.

From the announcement:

NASA has identified a variety of exploration, science, and technology demonstration objectives that could be addressed by sending instruments, experiments, or other payloads to the lunar surface. To address these objectives as cost-effectively as possible, NASA may procure payloads and related commercial payload delivery services to the Moon

In other words, NASA has money to spend on lunar science missions, and rather than plan those missions itself, as it has done since the 1960s, it is now offering to buy and launch proposals from private companies.

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Company that analyzes satellite data raises $50 million

Capitalism in space: Orbital Insight, a company that uses computers to analyze satellite imagery of the Earth, has raised $50 million in new investment capital.

The fresh capital will be used to expand its partnerships, increase its analytics products, and build bigger international sales operations in Europe and Asia, Orbital said. The Mountain View, California-based company founded by former NASA scientist and Google engineer James Crawford also will step up recruiting in engineering, data science and design.

Falling satellite launch costs are helping make geospatial imagery a bigger and better source for economists and investors tracking everything from China’s manufacturing to the number of cars parked outside Wal-Mart stores. Venture capital investment in space companies jumped to a record nearly $1.4 billion last year, bringing the total since 2000 to $13.3 billion, Goldman Sachs Group Inc. said in a report last month. [emphasis mine]

Nor are the lower launch costs hurting the launch industry. Instead, the industry is booming, as it now has a lot more customers available to buy their launch services.

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Elton John – Rocket Man

An evening pause: Hat tip Sayomara. This pause is slightly different, and is really two-for-one. The background music is Elton John’s “Rocket Man,” but the visuals are of SpaceX’s future spaceport site at Boca Chica beach near Brownsville, Texas. Apparently someone used a drone to fly over the site and videotaped it. As Sayomara noted, this “shows how far away this site is from being usable.”

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SpaceX successfully launches first surveillance satellite

Capitalism in space: SpaceX this morning successfully launched its first National Reconnaissance Office (NRO) surveillance satellite.

They also successfully landed the first stage at the cape. Video below the fold. These first stage landings are becoming entirely routine, which in the long run will probably be their biggest single achievement. Expect this stage to fly again.

Last night John Bachelor emailed me a link to a podcast I did with him from April 2011, six years ago. He has reposted it, entitling it “SpaceX underbids Big Space & the beginning of commercial space supremacy.” During that appearance I noted the signing of SpaceX’s first contract with NRO. That contract led to today’s launch.

About the same time I posted a story describing NASA’s first small development contracts for commercial manned capsules, awarded to Blue Origin, Sierra Nevada, SpaceX and Boeing. In that post, I predicted the following about this commercial effort:

I bet they all get their rockets/capsules launched and in operation, supplying cargos and crews to low Earth orbit, before NASA even test fires its heavy-lift rocket [SLS].

Looks like that’s a prediction that will turn out true.
» Read more

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Space, regulation, the Outer Space Treaty, and yesterday’s Senate hearing

Yesterday the space subcommittee of the Senate Commerce committee held a hearing, organized by Senator Ted Cruz (R-Texas), entitled “Reopening the American Frontier: Reducing Regulatory Barriers and Expanding American Free Enterprise in Space.”

You can watch the hearing here. There have also been a number of stories last night and today that summarized the testimony during this hearing.

Having watched the full hearing, I think that most of these stories did not capture well the full political context and significance of yesterday’s event. They focused on Cruz’s advocacy for private space and the call for less and more streamlined regulation by the witnesses. They missed a great deal else.
» Read more

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European push for more space regulations under international law

In the European space community and governmental circles, there appears to be a new push to revise the Outer Space Treaty, focused specifically on increasing the treaty’s regulatory power in the area of large satellite constellations and space junk.

This week [the city of] Darmstadt hosts a closed-door, governmental meeting of the Inter-Agency Space Debris Coordination Committee (IADC). Whether it was planned or not, the IADC is set to discuss a much-needed renewal of international space law, which is, experts admit, rather vague. But how far they will go is anyone’s guess.

…There is a palpable sense that the space community needs enforceable international laws and regulations, rather than – or merely to bolster – its current inter-agency agreements. They’ve served us so far, but few countries have actually signed up to them. That leaves a lot of wriggle-room, especially as space becomes increasingly commercialized.

Most of our space activities are governed by the Outer Space Treaty of 1967. It’s a short document that primarily seeks to ensure space operations are “peaceful” and for the good of all humanity. It is complemented by other agreements, including a set of documents on mitigating space debris. “We have a good, coherent set of justified rules and we don’t intend to alter them drastically,” said Christophe Bonnal of the French Space Agency, CNES, and the International Academy of Astronautics (IAA) in closing remarks last week. “But we will improve them at the IADC meeting to include mega-constellations.”

It appears to me that this is a push-back against Luxembourg’s recent announcement that it is going to request a renegotiation of the Outer Space Treaty to allow for property rights in space. What this article is advocating instead is that the treaty increase its control and regulatory power over private satellite constellations, which at present are not covered by the treaty.

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Vector suborbital rocket test scrubbed

A suborbital test flight of Vector’s orbital rocket was scrubbed on April 6 when a sensor aborted the launch.

The next test flight is scheduled for May 3, after a test April 6 at the company’s test site near the Mohave Desert was scrubbed when a sensor caused an automatic abort, Cantrell said.

Engineers quickly determined the rocket was functional but the company decided not to launch after high winds kicked up. But the rocket is fine, he said, adding that failures are part of the testing process. “We blew a lot of stuff up, trust me,” he said.

The article is more focused on describing in detail the company’s overall status, its fund-raising effort, its future plans, its present operation. This tidbit about the test launch was buried in it. That the flight didn’t fly is not a bad mark on the company, at this point. However, they are under pressure to fly as soon as possible in order to demonstrate success, and delays work against them.

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