Michigan Senate passes bipartisan legislation to jumpstart state’s SAF industry

The Michigan Senate passed bipartisan legislation June 25 to help launch the sustainable aviation fuel (SAF) industry in Michigan.  

Sponsored by Senate Majority Floor Leader Sam Singh, D-East Lansing, and Sen. Joseph Bellino, R-Monroe, Senate Bills 235–36 would establish an income tax credit for the producers and blenders of SAF—a move that would support Michigan’s farmers and economy while reducing the state’s carbon footprint. 

“It has been an exciting process to partner with my colleagues across the aisle and across the chamber on this legislation, which not only aims to support Michigan farmers but—in continuing what was outlined in the Clean Energy Future plan—would reduce our reliance on fossil fuels,” Singh said. “This legislation will open new markets for farmers, helping revitalize rural economies and reinforcing the connection between our agricultural sector and the state’s energy goals.” 

SAF is an environmentally friendly alternative to traditional jet fuel, produced using biobased renewable products manufactured from crops like soybeans or corn.  

By providing a $1.50-per-gallon tax credit for those who purchase, produce or blend sustainable aviation fuel, this legislation would directly support farmers and the businesses that develop and supply cleaner-burning SAF.  

Additional incentives are available if greater emissions reductions are reached.  

There is a maximum incentive cap of $4.5 million annually in the first year, and $9 million each year after. 

“Access to sustainable, reliable and affordable energy products is critical to long-term economic growth,” Bellino said. “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.” 

These bills now head to the House for further consideration, where their version of this legislation, House Bills 4424–25, sponsored by Rep. Jerry Neyer, R-Shepherd, also await consideration.