According to internal company documents, SpaceX has received billions of dollars in federal contracts since its establishment in 2002, yet has likely paid almost no federal income taxes. The company has privately indicated to investors that it may "never need to pay these taxes" in the future.

The aerospace company founded by billionaire Elon Musk remains privately held, keeping its financial details confidential. However, obtained documents reveal that by the end of 2021, SpaceX had accumulated nearly $5.4 billion in tax losses, enabling the company to utilize tax benefits including loss carryforwards to avoid paying federal income taxes to the U.S. government.

As a private aerospace company focused on reaching Mars, SpaceX has invested substantial capital since its founding. In its first operational year (2002), SpaceX posted losses of approximately $4 million. The following year, losses reached $14.5 million. Losses continued to grow in subsequent years, reaching $341 million in 2020 and $968 million in 2021.

Tax loss carryforwards allow companies to offset equivalent federal income taxes when they generate taxable income in future periods, a benefit available to all U.S. companies. Former President Trump's comprehensive tax reduction policies during his first term eliminated the 20-year limit on tax loss carryforwards, meaning SpaceX can indefinitely carry forward losses to subsequent tax years.

Additionally, documents show SpaceX holds $227 million in losses applicable to state income tax deductions and possesses $1.1 billion in other federal and state tax credits.

Based on these documents, SpaceX has indeed paid some income taxes, but likely not to the U.S. federal government. For example, one document disclosed that in 2021, SpaceX expected to pay $483,000 in income taxes to foreign governments and $78,000 to state governments. Documents reported an additional $6,000 in income taxes paid in 2020 and 2021, though the recipient was not specified.

Documents also reveal that SpaceX informed investors that due to past losses and other factors, the company "may not utilize some or all deferred tax assets," suggesting it might "never need to pay related taxes."

U.S. tax experts note that SpaceX's ability to avoid federal income taxes while receiving substantial contracts from the federal government and working closely with the Department of Defense, NASA, and other agencies warrants attention.

Tax law expert Gregg Polsky from New York University School of Law stated: "Given the scale of its net operating losses, it's almost certain the company hasn't paid any federal taxes for years. Due to the magnitude, even if it has had positive taxable income in recent years, it's unlikely to pay taxes."

Major U.S. technology companies, including those eligible for tax benefits, typically pay billions in taxes. For instance, Microsoft previously disclosed expectations to pay $14.1 billion in federal income taxes for the previous fiscal year.

Since its founding, SpaceX has signed hundreds of contracts with federal agencies, including agreements with NASA for cargo delivery to the International Space Station and contracts with U.S. intelligence agencies for spy satellites. Some contracts generate substantial revenue over multiple years.

According to document data, federal contracts generated $1.4 billion in revenue for SpaceX in 2020, representing 83.8% of the company's total revenue that year. In 2021, federal contracts brought in $1.7 billion, accounting for 76% of total revenue.

Danielle Brian, Executive Director of the Government Oversight Project, a nonprofit organization investigating corruption, believes SpaceX's use of tax benefit policies is "peculiar" because "this clearly wasn't designed for a company doing this well."

Musk stated in June that he expects SpaceX's revenue to reach $15.5 billion this year, with the company's commercial space revenue "expected to exceed NASA's total budget next year." SpaceX attributes rapid revenue growth largely to its Starlink satellite internet service, which has grown to approximately 6 million users.