Virginia Cited as Space Law Trendsetter

Virginia was cited as space law trendsetter by Eva-Jane Lark, a Vice-President and Investment Advisor with BMO Nesbitt Burns, in a paper "Economic Incentives & Tax Credits for Space Resource Development" placed on her web site today and presented at the the SSI Space Manufacturing 14 Conference last fall in California.

"Virginia is [a] state with space-specific incentives. Their Zero-G, Zero tax Act of 2008 provides for tax exemptions on income earned from the sale of training for spaceflight participants, launch services to them or from delivering payloads for NASA Commercial Orbital Transportation Services (COTS) resupply services contracts. The Virginia Commercial Space Flight Authority and the operations of the Mid Atlantic Regional Spaceport (MARS) and Wallops Island can also exempt equipment imported for the purposes of launch from import/export duties and launch consumables from sales tax," the investment advisor notes.

"It has the authority to issue bonds for infrastructure development and provides liability protection for space transportation companies and their contractors. These incentives led to Orbital Sciences Corporation’s decision to launch its Taurus II vehicle (partially funded by NASA COTS) out of MARS," Lark says in the presentation.

Virginia may pursue additional unique state legislation this year to generate much-needed funds for the spaceport. Stay tuned, the 2011 legislature is in session.