Port Canaveral pushes back against tax breaks for commercial space companies

State Rep. Tyler Sirois is proposing new tax breaks for commercial space companies like SpaceX and Blue Origin for the next 20 years.

But Port Canaveral is pushing back against the The "Zero G, Zero Fee Act," saying it would cost the port money and violate federal law, which prohibits ports from giving preferential treatment to some customers.

CEO John Murray laid out the port's concerns in a Sept. 27 letter to members of Brevard County's legislative delegation.

"As currently constructed, HB 65 would not only eliminate revenue the Port receives via its negotiated and fully executed agreements with commercial space operators, but may also set up a discriminatory practice by establishing preferential rate structures (zero fees) for one Port user or Port tenant (commercial space) versus another (such as cruise lines, fuel terminal operators, bulk terminal operators, and others) who are doing business at Port Canaveral," Murray wrote the lawmakers.

Port officials declined to say how much revenue the port received from commercial space companies, but noted that several marine vessels used for space recovery operations are docked at the port, and the port’s mobile harbor crane, the largest in North America, was designed and engineered to lift heavy cargo including space components.

More like this:Port Canaveral returns to profitability after cruises resume, after 16 months of losses

Related:MSC Cruises debuts at Port Canaveral, making it fifth cruise line with ships based there

The Canaveral Port Authority is the state agency that oversees the port. While the authority doesn't levy taxes it does collect various fees from users.

Sirois says the proposed tax break will keep Florida, the country's undisputed space launch leader, competitive in the commercial space industry as other states are also getting in the launch business.

"One of the things that I believe strongly in is that fees should not be an impediment to the growth of business in our state," Sirois said.

Murray said the port was committed to supporting the space industry, but would do so by fair pricing not free use of the port's facilities.

“The aerospace industry is a growing economic enterprise for our region, and the Canaveral Port Authority remains committed to supporting our partners in this important sector,' Murray wrote in a statement to FLORIDA TODAY. " At Port Canaveral, we work with all of our tenants and users, including our space partners, to ensure competitive and predictable fees for our port services. We look forward to continuing to work with all stakeholders to advance the mission of space exploration in our state.” 

State budget officials are still calculating what effect the tax break would have on state revenues.

The two biggest companies in commercial space, SpaceX and Blue Origin, are owned by two of the world's richest men, Elon Musk and Jeff Bezos. 

Still, Sirois feels the tax breaks are needed to keep Florida competitive with other states vying for a piece of the growing commercial space industry. "My legislation is really an attempt to put all of these issues on the table, including the regulatory environment, which my bill contemplates, to see what we can do to make Florida the best place for commercial aerospace to come and conduct business," he said.

A 25+ year veteran of FLORIDA TODAY, John McCarthy currently oversees the space team and special projects. Support quality local journalism by subscribing to FLORIDA TODAY. You can contact McCarthy at 321-752-5018 or jmccarthy@floridatoday.com.