New Mexico Gov. Susana Martinez has signed legislation aimed at saving the state's $1.5 billion spaceport.
Martinez said the move will prevent lawsuit abuse and make it easier for the industry to thrive in New Mexico.
Officials at Virgin Galactic and Spaceport America claim commercial space companies have passed over New Mexico in favor of states with more lenient liability exemptions.
Virgin Galactic hinted last year it might abandon plans to launch its $200,000-per-person space flights from New Mexico if the bill failed.