Bill
HB 4425
Overview: HB 4425, Corporate income tax: other; sustainable aviation fuel incentive program; create, bill electronically reproduced on 05/06/2025, introduced on March 11, 2025.Purp
Overview: HB 4425, Corporate income tax: other; sustainable aviation fuel incentive program; create, bill electronically reproduced on 05/06/2025, introduced on March 11, 2025.
Purpose and Intent: The purpose of this bill is to create a new corporate income tax incentive program to encourage the production and use of sustainable aviation fuel (SAF) in order to reduce greenhouse gas emissions from the aviation industry.
Key Provisions:
- Establishes a refundable tax credit of $1.50 per gallon of SAF produced and sold for use in aircraft
- Defines SAF as a liquid fuel that is produced from biomass or waste resources and meets certain sustainability and emissions reduction criteria
- Requires the Michigan Department of Treasury to administer the program and certify eligible SAF producers
Affected Parties and Impacts: This bill would benefit aviation fuel producers who invest in SAF production facilities, as well as airlines and other aircraft operators that use the certified SAF. It aims to drive investment and adoption of cleaner aviation fuels.
Procedural and Timeline Considerations: The bill has been electronically reproduced and is tied to another related bill, HB 4424. If passed, the SAF tax credit program would take effect starting in the 2026 tax year.
Compiled from official sources — confirm details with the bill’s official record.
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