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HB 4424

Corporate income tax: credits; credit for use of sustainable aviation fuel; provide for. Amends 1967 PA 287 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: HB 4425'25

2025-2026 Regular Session Introduced by Greg Alexander and 17 co-sponsors

Michigan bill creates corporate income tax credit for sustainable aviation fuel use to incentivize cleaner aviation fuels and reduce emissions.

referred to second reading
#aeronautics:other #corporateincometax:credits #energy:alternativesources #energy:conservationandefficiency
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Bill Summary · HB 4424

Legislative bill overview

HB 4424 amends Michigan's corporate income tax law to create a new tax credit for businesses that use sustainable aviation fuel (SAF). The bill is tied to HB 4425, meaning both bills must pass together to take effect. The specific credit structure and eligibility requirements are not detailed in the bill summary provided.

Why is this important

This proposal directly incentivizes aviation industry adoption of cleaner fuel alternatives, potentially reducing aviation emissions in Michigan. Tax credits are a common policy tool to encourage business investment in environmental technologies without direct government spending, though they do reduce state tax revenue. The aviation sector represents a significant carbon contributor, making fuel transition policy relevant to climate and economic development goals.

Potential points of contention

  • Revenue impact: The bill's cost to the state budget is not specified; critics may question foregone tax revenue versus environmental benefits, while supporters may argue long-term economic gains justify the incentive
  • Equity concerns: Tax credits primarily benefit larger corporations with sufficient tax liability to use them; smaller operators or those unable to afford SAF conversion may see limited benefit
  • Dependency tie-bar: Linking to HB 4425 means rejection of either bill kills both; unclear legislative intent without seeing the companion bill's provisions

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

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