Bill > SB0235

This bill creates a new tax credit for companies producing or blending sustainable aviation fuel (SAF) in Michigan, effective January 1, 2026. Qualified taxpayers can claim a base credit of $1.50 per gallon of SAF produced in the state and sold to an aircraft departing from a Michigan airport. The credit can increase up to $2.00 per gallon if the fuel reduces greenhouse gas emissions by more than 50%, with the credit increasing by $0.02 for each additional 1% reduction. To claim the credit, taxpayers must obtain a tax credit certificate from the Department of Environment, Great Lakes, and Energy and attach it to their annual tax return. If the credit exceeds the taxpayer's tax liability, the excess will be refunded. The bill defines key terms such as "sustainable aviation fuel" and "qualified taxpayer" and is contingent on the passage of a related Senate Bill (SB 236). This incentive aims to encourage the production of lower-emission aviation fuel within the state and support the development of more environmentally friendly transportation technologies.