Bill > HB4425

This bill creates a Sustainable Aviation Fuel (SAF) Incentive Program to encourage the production of environmentally friendly aviation fuel in Michigan. The program allows qualified taxpayers to claim tax credits for producing sustainable aviation fuel that meets specific criteria, including being derived from biomass or renewable energy sources, meeting established fuel standards, and achieving at least a 50% reduction in greenhouse gas emissions compared to petroleum-based aviation fuel. The Department of Environment, Great Lakes, and Energy will administer the program, developing an application process where producers must submit detailed documentation about their fuel production, including evidence of production in Michigan and certification that the fuel will be used in aircraft departing from Michigan airports. The program has funding caps, with $4.5 million available in the 2025-2026 fiscal year and $9 million in subsequent years. Producers must apply within two months of their tax year's end, and the department will review applications within 30 days, issuing certificates for approved credits. The bill also requires annual reporting to legislative committees about the program's operation and effectiveness, including total tax credits certified and the number of applications received and approved. The program is contingent on the passage of a related bill and aims to incentivize the development of more environmentally friendly aviation fuel production in the state.

Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4425