State lawmakers in Michigan have unveiled a bipartisan plan to help launch a sustainable aviation fuel (SAF) industry in the state. The proposal—introduced as House Bills 4424-4425 and Senate Bills 235-236—aims to offer an income tax credit to those who produce or blend SAF for flights departing from Michigan, reports Michigan House Republicans.
SAF, made from renewable sources like corn or soybeans, is blended with traditional jet fuel to reduce carbon emissions from aviation. It is viewed as a cleaner alternative that can help the state meet future energy and environmental goals.
“Things are changing fast in Michigan,” said Rep. Jerry Neyer, a Republican from Shepherd. “Farmers are stuck in a ‘wait and see’ mode due to shifting federal policies. This plan gives them a clear signal: there’s a growing market for their crops in clean fuel production. It’s a practical way to cut emissions, grow the economy, and support our agricultural community.”
Sen. Sam Singh, a Democrat from East Lansing, said the measure is aligned with the goals of the state’s broader clean energy initiative. “It won’t be easy to decarbonize the aviation sector, but this is a smart first step,” he said. “By working with farmers and producers, we can reduce emissions while strengthening Michigan’s economy.”
Under the proposed legislation, producers and blenders of SAF would receive a $1.50 per gallon tax credit. Additional incentives would be available for achieving higher emissions reductions. The annual cap on incentives would be $4.5 million in the first year and $9 million annually over the following nine years.
Sen. Joseph Bellino, a Republican from Monroe, praised the plan for its potential to deliver long-term economic and environmental benefits. “This is a commonsense approach that supports local farmers and helps keep fuel prices stable, all while making aviation cleaner,” he said.
If passed, the legislation would provide a major push for SAF development in Michigan, combining environmental goals with economic support for the state’s agriculture sector.
