SB 1488 Summary

• Allows income tax subtractions for gain recognized from the sale of commercial items delivered into space or to the edge of space, and associated hardware and services developed in Arizona or originating from an Arizona airport or spaceport, effective for taxable years beginning after December 31, 2016.

• Permits subtractions for gain from resupply services contracts with NASA's commercial orbital transportation services division or other licensed space flight entities for payload launched from Arizona airports or spaceports.

• Defines "space flight entity" as any public or private entity holding a license or authorization from the Federal Aviation Administration under the Commercial Space Launch Amendments Act, including manufacturers or suppliers of components and vehicles reviewed by the FAA.

• Imposes an aggregate dollar limit of $50 million in combined subtractions across both individual and corporate taxpayers over a ten-year period from January 1, 2017 through December 31, 2026, with subtractions allowed on a first-come, first-served basis based on tax return filing dates.

• Applies these provisions to both individual taxpayers under section 43-1022 and corporations under section 43-1122, and titles the act the "Arizona Zero G Zero Tax Act."