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Exempt facility bond

A type of bond issued by state or local governments to finance certain private projects (like airports, docks, or, with this bill, spaceports) where the interest earned by investors is not subject to federal income tax. This makes the bonds more attractive to investors, allowing projects to be financed at a lower cost.

Internal Revenue Code of 1986

The primary body of federal tax laws in the United States, which outlines how taxes are calculated, collected, and regulated.

Governmental unit

Typically refers to a state, a territory, a possession of the United States, the District of Columbia, or any political subdivision of the foregoing. In simple terms, it means a state, city, county, or similar public entity.

Spaceport

A facility, similar to an airport, used for launching, landing, manufacturing, servicing, or controlling spacecraft and related activities.

State ceiling

An annual limit imposed by federal tax law on the total amount of certain tax-exempt bonds, specifically "private activity bonds," that a state can issue. This bill would exempt spaceport bonds from this limit.

Federally guaranteed bond

A bond for which the payment of principal or interest is guaranteed by the federal government. Generally, these bonds are not tax-exempt, but this bill creates an exception for spaceports when the U.S. government is a user.