"This is how SpaceX doesn't pay taxes": the exemption (also thanks to Trump) for Elon Musk's company

ROME – The friendship between Elon Musk and President Donald Trump is now over; the entrepreneur has been ousted from the White House and has repeatedly threatened to found a new party that would fish for votes from the Maga pool . But the richest man in the world still benefits, through his SpaceX , from a tax shield that The Donald made even bigger during his first term. The New York Times reveals that, in exchange for billion-dollar contracts with the US government, Musk's aerospace agency enjoys an exemption that, since its founding, has essentially allowed it to " pay little or nothing in federal taxes ."

SpaceX: How the Federal Tax Exemption Works

Citing internal sources and legal documents, the U.S. newspaper reports that managers explained to investors that the company has been exempt from paying federal taxes , in whole or in part, since 2002 and that it expects never to have to. Documents reviewed by the Times show that SpaceX enjoys a tax exemption that allows it to offset the more than $5 billion in losses accumulated by the end of 2021 against future taxable income.

During his first term in 2017 , Trump made a change that eliminated the expiration date of the tax break for all companies. According to the NYT, this means that nearly $3 billion of SpaceX's losses can be applied by the company as an indefinite shield against future taxable income .

In 2020, federal contracts accounted for about 84% of SpaceX's revenue. Such a broad tax exemption, the NYT reports, is a significant advantage for the aerospace manufacturer over its competitors. This advantage can be used even if the company—which is the case—is profitable.

How SpaceX Accumulated Debt

SpaceX earned $5 billion in 2024, up from $2.6 billion in 2023. According to the NYT , the company will pay $483,000 in income taxes to countries outside the United States and $78,000 in state income taxes in 2021. “It also reported paying $6,000 in income taxes in 2020 and 2021,” the newspaper explains, “but did not disclose whether the payments were intended for the federal, state, or local government.”

In 2002, the company lost around $4 million , the following year $14.5 million, then the losses increased: $341 million in 2020, $968 million in 2021. By the end of that year, it had accumulated over $5.4 billion in losses . This figure allowed it to enjoy tax exemptions equal to the losses recorded.