Bill > SF1312

This bill modifies Minnesota's tax credit program for sustainable aviation fuel (SAF), extending and expanding existing incentives for producers and blenders of low-carbon aviation fuels. The bill increases the tax credit allocation from $7.4 million to $7.4 million annually for fiscal years 2025-2027, and from $2.1 million to $2.1 million annually for fiscal years 2028-2035. Additionally, the bill introduces a new supplemental tax credit of $0.02 per gallon for each percentage point of carbon intensity reduction beyond the baseline 50% reduction, with a maximum supplemental credit of $0.50 per gallon. Qualifying taxpayers can claim a base credit of $1.50 per gallon for sustainable aviation fuel produced or blended in Minnesota and sold for use in aircraft departing from Minnesota airports. The bill expands the definition of sustainable aviation fuel to include fuels derived from gaseous carbon oxides and maintains the requirement that the fuel must achieve at least a 50% reduction in greenhouse gas emissions compared to petroleum-based aviation fuels. The legislation is retroactively effective for taxable years beginning after December 31, 2023, and applies to sustainable aviation fuel sold between June 30, 2024, and July 1, 2035, effectively extending the program's timeframe and providing more robust financial incentives for low-carbon aviation fuel production.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1312&ssn=0&y=2025