Sec. 311. Workforce enhancement
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/bill/114/hr/4945/ih/section-311·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 83 of the Internal Revenue Code of 1986 is amended by adding at the end the following: Any person described in paragraph
(2)may elect to include in his gross income for the taxable year in which such person sells or otherwise disposes of stock or options described in paragraph
(2)in an arm’s length transaction, the excess of— the fair market value of such property at the time of such sale or disposition (determined without regard to any restriction other than a restriction which by its terms will never lapse), over the amount (if any) paid for such property. If such election is made, subsection
(a)shall not apply with respect to the transfer of such stock or option. A person is described in this paragraph if the person— performs services in connection with which stock or option-related compensation is transferred by a domestic commercial space company during any taxable year in which the company incurs start-up expenditures (whether or not claimed by such company), and does not own or is considered as not owning within the meaning of section 318— more than 1 percent of the outstanding stock of the corporation or stock possessing more than 1 percent of the total combined voting power of all stock of the corporation, or if the employer is not a corporation, does not own more than 1 percent of the capital or profits interest in the employer. The term domestic commercial space company means a company engaging in a line of business unique to a space company, such as launch, satellite operations, software development, satellite manufacturing, spacecraft manufacturing, and space transportation vehicle manufacturing, with operations and employees based in the United States. The term start-up expenditures has the meaning given such term by section 195. .