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House committee backs tax-credit substitutes to spur sustainable aviation fuel production
Summary
The House Transportation and Infrastructure Committee reported two companion bills (House Bills 4424 and 4425) with substitutes that create state tax credits to encourage sustainable aviation fuel (SAF) production, require evidence of greenhouse-gas reductions, and include a 10-year sunset for program review.
The House Transportation and Infrastructure Committee on the record reported two bills aimed at expanding in-state production of sustainable aviation fuel and supporting corn growers who would supply feedstocks.
Representative Nyer summarized the substitutes as creating state tax credits for SAF, adding a requirement that applicants provide clear evidence that SAF reduces greenhouse-gas emissions, updating implementation dates, and inserting a 10-year sunset to ensure a timely program review. Representative Miller said he supported the proposals and planned to vote yes, calling the bills a step forward for farmers and an emerging market.
The clerk read written support from business and agriculture groups not wishing to testify, including the Detroit Regional Chamber, Michigan Corn Growers Association, Michigan Farm Bureau and Clean Fuels Michigan.
Vice Chair Alexander moved to adopt Substitute H-2 for House Bill 4424; the clerk called the roll and the substitute was adopted. The committee then voted to report House Bill 4424 with a recommendation as Substitute H-2. The committee later adopted Substitute H-4 for House Bill 4425 and reported that bill with a recommendation as Substitute H-4.
The bills will move to the next stage with the committee’s recommendations. The substitutes add programmatic guardrails — notably the greenhouse-gas reduction evidence requirement and a 10-year sunset — designed to allow policymakers to reassess the program’s effectiveness.
What’s next: Both bills were reported with recommendation and will appear on the House calendar for further action. Committee members who pressed for details did not request a layover or additional agency testimony on these particular measures during today’s session.
