State Rep. Jerry Neyer and State Sens. Sam Singh and Joseph Bellino on Thursday announced their plan to jumpstart the sustainable aviation fuel (SAF) industry in Michigan. The plan, House Bills 4424-4425 and Senate Bills 235-236, would establish an income tax credit for the producers and blenders of sustainable aviation fuel (SAF), which will be purchased and used for flights departing Michigan.

SAF is an environmentally friendly alternative to traditional jet fuel. It’s produced using bio-renewable products like ethanol or diesel which are manufactured from crops like soybeans or corn. The SAF is then blended with regular aviation fuel to help reduce the amount of carbon that’s emitted into the atmosphere.

“Whether we like it or not, things are changing in Michigan,” said Neyer, R-Shepherd. “New clean energy standards are quickly approaching, and pending policy changes from the feds have left corn and soybean farmers with a ‘let’s wait and see’ mentality. And who can blame them? The demand for their products could change with one press conference. This bipartisan plan is a practical solution that will reduce emissions, promote economic growth, and take care of our farmers. By incentivizing the private sector to produce and blend SAF here in Michigan, we can encourage cleaner skies and boost the agriculture industry at the same time.”

“This bipartisan plan will make aviation fuel more accessible and affordable and will help us realize the global vision we spelled out in our landmark Clean Energy Future plan,” said Singh, D-East Lansing. “Decarbonizing the aviation sector will not be easy, but we have to start somewhere. Working collaboratively with our farmers and producers will simultaneously reduce carbon emissions in our atmosphere and support our Michigan economy. By tackling this monumental task, we continue to prove that Michigan is a global leader in protecting our environment.”

The legislation would provide a $1.50 per gallon tax credit for those who purchase, produce, or blend sustainable aviation fuel. The credit is designed to directly support farmers and the businesses that develop and supply cleaner-burning, ethanol-derived aviation fuels. If greater emissions reductions are reached, additional incentives are available. There is a maximum incentive cap of $4.5 million annually in first year, and $9 million annually thereafter for the next nine years.

“Access to sustainable, reliable, and affordable energy products is critical to long-term economic growth,” said Bellino, R-Monroe. “I am proud to be part of a commonsense, bipartisan approach to enlisting Michigan farmers in the effort to provide cleaner aviation fuel in our state. It is a proactive solution that supports our local farmers, boosts our agriculture industry, and better ensures stable fuel costs — all while also helping cut harmful emissions.”

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