RLV economics: fiscal evaluation of NASA''s reusable launch vehicle effort

The US RLV program aims to stimulate commercial development of a next-generation heavy-lift launcher and lower launch costs by one order of magnitude from the Space Shuttle. This paper discusses the incentives needed to encourage private investment — income tax relief, investment mitigation, financing assistance — in the venture and uses a specifically developed case study model to evaluate their effectiveness. It finds that an R&D tax credit would be the most practical incentive. Directions for future work are provided.