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HCR 35

Urging Congress to amend the Internal Revenue Code to make spaceports eligible for tax-exempt private activity bonds.

89th Legislature (2025) Introduced by Daniel Alders and 20 co-sponsors

Texas urges Congress to allow spaceports to use tax-exempt bonds for financing, reducing construction costs for commercial space facilities.

Signed by the Governor
#resolutions--legislativepolicy(i0685) #resolutions--memorializingcongress(i0675) #spaceports(s0376)
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Bill Summary · HCR 35

Legislative bill overview

HCR 35 is a resolution urging the U.S. Congress to amend the Internal Revenue Code to allow spaceports to qualify for tax-exempt private activity bonds (PABs). This would enable spaceport developers and operators to finance construction and expansion projects through bonds whose interest is exempt from federal income tax, reducing borrowing costs.

Why is this important

Tax-exempt bonds significantly lower financing costs for large infrastructure projects, making them more economically viable. Extending this benefit to spaceports could accelerate commercial space industry development in Texas, potentially creating jobs and economic activity, while also influencing how Congress prioritizes emerging industries in tax policy.

Potential points of contention

  • Federal authority: Only Congress can amend the tax code; this resolution has no binding power but signals state preference that may or may not align with federal priorities
  • Fiscal cost: Tax-exempt bonds reduce federal tax revenue; Congress must weigh this against other infrastructure priorities and deficit concerns
  • Industry maturity debate: Some argue the commercial space industry is sufficiently established and profitable to fund its own infrastructure without subsidies, while others see it as strategic infrastructure warranting support
  • Precedent concerns: Expanding PAB eligibility could lead to requests from other emerging industries, raising questions about fair allocation of tax benefits

Compiled from official sources — confirm details with the bill’s official record.

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