Bill > SB0236

This bill establishes a Sustainable Aviation Fuel (SAF) Incentive Program in Michigan to encourage the production of aviation fuel with reduced greenhouse gas emissions. The program allows qualified taxpayers who produce sustainable aviation fuel to claim tax credits by submitting an application to the Department of Environment, Great Lakes, and Energy. To qualify, the aviation fuel must be derived from biomass or renewable sources, meet specific international fuel standards, and achieve at least a 50% reduction in life-cycle greenhouse gas emissions compared to petroleum-based aviation fuel. Producers must provide documentation proving the fuel's origin, emissions reduction, and that it was purchased for use in aircraft departing from Michigan airports. The program has a financial cap of $4.5 million for the 2025-2026 fiscal year, increasing to $9 million in subsequent years. The department is required to submit an annual report to legislative committees detailing the program's performance, including the total tax credits certified and the number of applications received and approved. The bill's implementation is contingent on the passage of a related Senate bill, and it aims to incentivize the development of more environmentally friendly aviation fuel production in the state.

Agriculture and Natural Resources, Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0236