Michigan committee hears testimony on sustainable aviation fuel tax credits; substitute adopted for HB 44-25

The House Transportation Infrastructure Committee on Tuesday heard extensive testimony on House Bills 44-24 and 44-25, a package to create a Michigan sustainable aviation fuel incentive program that backers say would build local supply chains and new markets for farmers.

Sponsor Representative Nyer, who described the bills as an effort to “encourage farmers and blenders to create the needed supply chain within our state for production,” said the proposal aims to attract ethanol producers and blenders to produce a 50/50 blend of ethanol-based SAF and conventional jet fuel and to spur investment in in-state blending and production facilities.

The bills would fund incentives beginning with $4,100,000 in the first year and then provide up to $9,000,000 per year for a 10-year period; the sponsor and supporters said the program contains a 10-year sunset. The draft legislation also specifies that after Jan. 1, 2030, sustainable aviation fuel used under the program must be derived from domestic feedstock.

Why it matters: Airlines and producers testified that SAF is…