The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Transportation
BILL: SB 968
INTRODUCER: Senators Calatayud and Trumbull
SUBJECT: Spaceport Territory
DATE: January 29, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Ingram Proctor MS Favorable
2. Shutes Vickers TR Pre-meeting
3. RC
I. Summary:
SB 968 expands spaceport territory to include certain real property in Miami-Dade County
consisting of property that was formerly included within the boundaries of Homestead Air Force
Base and is included in the Homestead Air Reserve Base or deeded to Miami-Dade County or
the City of Homestead. The bill provides that Homestead Air Force Base refers to and includes
federal property that is part of Homestead Air Reserve Base and former federal property that was
previously part of Homestead Air Force Base and, as of July 1, 2024, or anytime thereafter, is
deeded to Miami-Dade County or the City of Homestead.
In addition, the bill expands spaceport territory to include certain real property in Bay County
which is included within the boundaries of Tyndall Air Force Base.
The bill may have an indeterminate likely insignificant fiscal impact due to commercial activities
within the newly designated spaceport territory.
The bill takes effect July 1, 2024.
II. Present Situation:
Federal Regulations
The Office of Commercial Space Transportation was established in 1984 under the U.S.
Department of Transportation, and in 1995, transferred to the Federal Aviation Administration
(FAA), to regulate and facilitate safe operations of the U.S. commercial space transportation
industry.
1
The Commercial Space Launch Act of 1984, as amended, authorizes the FAA to
establish licensing and regulatory requirements for launch vehicles, launch sites, and reusable
1
U.S. Dep’t of Transportation, Federal Aviation Administration, Offices, About the Office of Commercial Space
Transportation, available at https://www.faa.gov/about/office_org/headquarters_offices/ast (last visited Jan. 10, 2024).
REVISED: BILL: SB 968 Page 2
suborbital rockets.
2
FAA’s launch regulations require a license or permit for all commercial
launches taking placed within the U.S. borders as well as for launches being conducted abroad.
In general, the FAA does not license launches by U.S. governmental entities. The FAA has
licensed the operation of FAA approved launch sites in 10 states
3
including Florida.
4
Spaceport Territory in Florida
Section 331.304, F.S., provides that the following property constitutes spaceport territory:
Certain real property in Brevard County which is included within the 1998 boundaries of
Patrick Space Force Base, Cape Canaveral Space Force Station, or John F. Kennedy Space
Center.
Certain real property in Santa Rosa, Okaloosa, Gulf, and Walton Counties which is included
within the 1997 boundaries of Eglin Air Force Base.
Certain real property in Duval County which is included within the boundaries of Cecil
Airport and Cecil Commerce Center.
Certain real property in Brevard County which is included within the boundaries of Space
Coast Regional Airport, Space Coast Regional Airport Industrial Park, and Spaceport
Commerce Park.
Real property within the state which is a spaceport licensed by the FAA, as designated by the
board of directors of Space Florida.
Spaceport
A spaceport is any area of land or water, or any manmade object or facility located therein,
developed by Space Florida, which is intended for public use or for the launching, takeoff, and
landing of spacecraft and aircraft, and includes any associated areas which are used or intended
for public use, for spaceport buildings, or for other spaceport facilities, spaceport projects, or
rights-of-way.
5
U.S. spaceports play a critical role in the growing global commercial space
transportation industry.
6
Spaceports in Florida
Currently, Florida has two federally owned spaceports and four FAA licensed commercial
spaceports. The Cape Canaveral Space Force Station and the National Aeronautics and Space
Administration’s Kennedy Space Center are owned and operated by the federal government. The
four FAA licensed commercial spaceports in Florida are the Space Florida Launch Complex 46
and Space Florida Launch and Landing Facility, both operated by Space Florida; the Cecil Air
2
51 U.S.C. ss. 50901-23.
3
The FAA website identifies the following states with one or more FAA licensed spaceports: Alabama, Alaska, California,
Colorado, Florida, Georgia, New Mexico, Oklahoma, Texas, and Virginia available at
https://www.faa.gov/space/spaceports_by_state (last visited Jan. 10, 2024).
4
Federal Aviation Administration, FAQs, Launch Licenses and Launch Sites and Spaceports, available at
https://www.faa.gov/space/additional_information/faq#commercial2 (last visited Jan. 10, 2024).
5
Section 331.303(17), F.S.
6
U.S. Dep’t of Transportation, Federal Aviation Administration, Spaceports, available at
https://www.faa.gov/space/spaceports (last visited Jan. 10, 2024). BILL: SB 968 Page 3
and Space Port, operated by the Jacksonville Aviation Authority; and the Space Coast Regional
Airport, operated by the Titusville-Cocoa Airport Authority.
7
State Investments and Exemptions
Strategic Space Infrastructure Investment
In consultation with Space Florida, the Florida Department of Transportation is authorized to
fund up to 100 percent of the cost of a strategic spaceport launch support facilities investment
project
8
if the following conditions have been met:
Important access and on-spaceport and commercial launch facility capacity improvements
are provided;
Capital improvements that strategically position the state to maximize opportunities in
international trade are achieved;
Goals of an integrated intermodal transportation system for the state are achieved; and
Feasibility and availability of matching funds through federal, local, or private partners are
demonstrated.
9
Spaceport - Sales and Use Tax Incentives
The state provides a tax exemption for certain machinery and equipment purchased for a new or
expanding business in a spaceport territory which is engaged in commercial spaceport
activities.
10,11
In accordance with general law and Florida Administrative Code,
12
this exemption
is available for machinery for a new business ordered before the start of productive operations
and received within 12 months after the date the business begins its productive operations, and
for an existing business, the expanding business entity must show a minimum five percent
increase in productive output. In order to receive an exemption, the qualifying business entity
must file with the Florida Department of Revenue An Application for Temporary Tax Exemption
Permit, Form DR-1214.
13
7
U.S. Dep’t of Transportation, Federal Aviation Administration, Spaceports by State, available at
https://www.faa.gov/space/spaceports_by_state (last visited Jan. 10, 2024).
8
Section 331.303(14), F.S., defines project as any activity associated with any development, improvement, property, launch,
utility, facility, system, works, road, sidewalk, enterprise, service, or convenience, which may include coordination with
federal and state partners or agencies; any rocket, capsule, module, launch facility, assembly facility, operations or control
facility, tracking facility, administrative facility, or any other type of aerospace-related transportation vehicle, station, or
facility; any type of equipment or instrument to be used or useful in connection with any of the foregoing; any type of
intellectual property and intellectual property protection in connection with any of the foregoing including, without
limitation, any patent, copyright, trademark, and service mark for, among other things, computer software; any water,
wastewater, gas, or electric utility system, plant, or distribution or collection system; any small business incubator initiative,
including any startup aerospace company, and any aerospace business proposing to expand or locate its business in this state,
research and development company, research and development facility, education and workforce training facility, storage
facility, and consulting service; or any tourism initiative, including any space experience attraction, microgravity flight
program, aerospace launch-related activity, and space museum sponsored or promoted by Space Florida.
9
Section 331.371, F.S.
10
Section 212.02(22), F.S., defines spaceport activities as activities directed or sponsored by Space Florida on spaceport
territory pursuant to its powers and responsibilities under the Space Florida Act.
11
Section 212.08(5), F.S.
12
Fla. Admin. Code R. 12A-1.096 (2013).
13
Florida Dep’t of Revenue, General Tax, Sales and Use Tax Incentives, Incentives Related to Machinery and Equipment,
Exemption for Industrial Machinery and Equipment Used by a New or Expanding Business to Increase Productive Output,
available at https://floridarevenue.com/taxes/taxesfees/pages/sales_tax_incent.aspx (last visited Jan. 10, 2024). BILL: SB 968 Page 4
Homestead Air Force Base and Homestead Air Reserve Base
Homestead Air Force Base was renamed Homestead Air Reserve Base (HARB) in 2003.
14
HARB is located in southeastern Miami-Dade County, near the southern tip of the Florida
peninsula. HARB is located along U.S. Highway 1, approximately 25 miles south of Miami, 5
miles east of Homestead, and 2 miles west of Biscayne Bay. HARB is comprised of 1,943 acres,
with the surrounding area being largely agricultural but in the process of being rezoned for
residential and commercial purposes. Farther to the east, south, and southeast are vacant parcels
of land. These vacant parcels are either protected (due to easements) or unprotected (private
ownership and could be developed). There are a few commercial plots to the north and northwest
of the installation; some residential areas to the south of the installation; and residential
developments to the west, north, and northwest of the installation. Areas to the southwest of the
installation are being developed for residential and commercial land uses according to Miami-
Dade County Planning and Zoning.
15
Tyndall Air Force Base
Tyndall Air Force Base (TAFB) is located one mile southeast of Panama City, Florida. TAFB
encompasses approximately 29,000 acres on a narrow, 18-mile-long, northwest-southeast
peninsula. Major communities surrounding the installation include Panama City, Lynn Haven,
Springfield, Callaway, and Cedar Grove to the northwest, Panama City Beach to the west, and
Mexico Beach to the southeast.
16
III. Effect of Proposed Changes:
SB 968 amends s. 331.304, F.S., to expand spaceport territory to include certain real property in
Miami-Dade County consisting of property that was formerly included within the boundaries of
Homestead Air Force Base and is included in the Homestead Air Reserve Base or deeded to
Miami-Dade County or the City of Homestead. The bill provides that Homestead Air Force Base
refers to and includes federal property that is part of Homestead Air Reserve Base and former
federal property that was previously part of Homestead Air Force Base and, as of July 1, 2024, or
anytime thereafter, is deeded to Miami-Dade County or the City of Homestead.
In addition, the bill expands spaceport territory to include certain real property in Bay County
which is included within the boundaries of Tyndall Air Force Base.
New and expanding businesses engaged in commercial spaceport activities which are located in
a spaceport territory designated by the bill may be eligible for a tax exemption on the purchase of
certain machinery and equipment.
14
U.S. Environmental Protection Agency, Homestead Air Force Base - Cleanup Activities, available at
https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.Cleanup&id=0404746#bkground (last visited
Jan. 11, 2024).
15
Id.
16
U.S. Environmental Protection Agency, Tyndall Air Force Base - Cleanup Activities, available at
https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.Cleanup&id=0401205#bkground (last visited
Jan. 11, 2024). BILL: SB 968 Page 5
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
A new or expanding business located within the newly designated spaceport territory
which is engaged in commercial spaceport activities may be eligible for a sales tax
exemption on the purchase of certain machinery and equipment.
C. Government Sector Impact:
The bill may have an indeterminate likely insignificant fiscal impact due to commercial
activities within the newly designated spaceport territory.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None. BILL: SB 968 Page 6
VIII. Statutes Affected:
This bill substantially amends section 331.304 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.