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SB 235

Corporate income tax: credits; credit for use of sustainable aviation fuel; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: SB 236'25

2025-2026 Regular Session Introduced by Joe Bellino and 6 co-sponsors

Michigan establishes a corporate income tax credit for businesses using sustainable aviation fuel to incentivize cleaner aviation practices.

referred to Committee on Transportation and Infrastructure
#aeronautics:other #corporateincometax:credits #energy:alternativesources #energy:conservationandefficiency
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Bill Summary · SB 235

Legislative bill overview

SB 235 amends Michigan's corporate income tax code to establish a new tax credit for businesses that use sustainable aviation fuel (SAF). The bill incentivizes the aviation industry to adopt cleaner fuel alternatives by reducing their state tax liability based on SAF consumption.

Why is this important

Aviation fuel represents a significant portion of the transportation sector's carbon emissions, and SAF is considerably more expensive than conventional jet fuel. A tax credit makes SAF economically competitive, potentially accelerating Michigan's aviation industry transition toward sustainability while positioning the state as a leader in green aviation technology. This also connects to broader climate and air quality goals.

Potential points of contention

  • Cost to state revenue: Tax credits reduce state income tax collection; the bill's fiscal impact and whether the revenue loss is justified by environmental benefits remains unclear without cost estimates
  • Equity of subsidy: Questions about whether subsidizing a specific industry's fuel choice is the most efficient climate policy compared to broader carbon pricing mechanisms
  • Credit structure details: The specific credit amount, duration, eligibility requirements, and potential for abuse or gaming the system are not detailed in this summary and warrant scrutiny
  • Tied legislation: The "tie bar" with SB 236 suggests interdependent provisions that must be evaluated together for full policy understanding

Compiled from official sources — confirm details with the bill’s official record.

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