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Bill

SB 236

Corporate income tax: other; sustainable aviation fuel incentive program; create. Creates new act.

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

Michigan establishes corporate tax incentives for sustainable aviation fuel production and use to promote clean aviation and green energy jobs.

referred to Committee on Transportation and Infrastructure
#corporateincometax:other
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Bill Summary · SB 236

Legislative bill overview

SB 236 creates a new sustainable aviation fuel (SAF) incentive program in Michigan that provides corporate income tax benefits to businesses that produce or use sustainable aviation fuel. The bill establishes tax credits or deductions designed to encourage investment in SAF production and adoption as an alternative to traditional jet fuel.

Why is this important

Sustainable aviation fuel is a key component of efforts to reduce aviation's carbon emissions and achieve climate goals. By offering tax incentives, Michigan aims to attract SAF production facilities and create jobs in the clean energy sector while potentially positioning the state as a hub for aerospace fuel innovation. The program could influence broader adoption of SAF across commercial and regional airlines.

Potential points of contention

  • Tax revenue impact: The extent of foregone corporate tax revenue from these incentives is unclear and could strain state budgets if the program proves more costly than projected
  • Definition and verification challenges: Determining what qualifies as "sustainable" aviation fuel and verifying compliance could create administrative complexity and potential for misuse
  • Scope of beneficiaries: Questions about whether incentives broadly benefit large corporations versus supporting small producers, and whether benefits extend to in-state producers only or all users of SAF

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

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