SpaceX Gets Billions From US Govt But Gives Little To Nothing Back In Taxes

SpaceX, Elon Musk's rocket and satellite internet company, has received billions of dollars in federal contracts over its more than two-decade existence.

- SUSANNE CRAIG & KIRSTEN GRIND

But SpaceX has most likely paid little to no federal income taxes since its founding in 2002 and has privately told investors that it may never have to pay any, according to internal company documents reviewed by The New York Times.

The rocket maker's finances have long been secret because the firm is privately held. But the documents reviewed by The Times show that SpaceX can seize on a legal tax benefit that allows it to use the more than $5 billion in losses it racked up by late 2021 to offset paying future taxable income.

US President Donald Trump made a change in 2017, during his first term, that eliminated the tax benefit's expiration date for all companies.

For SpaceX, that means that nearly $3 billion of its losses can be indefinitely applied against future taxable income.

Tax experts said that not having to pay $5 billion in federal income taxes was substantial and notable for a company that has relied on contracts with the US government to an unusual degree.