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. 677.

This bill creates a new state tax credit for companies that produce or blend sustainable aviation fuel in Michigan. Beginning in 2025, eligible businesses can receive up to $1.50 per gallon for fuel sold to airlines flying out of Michigan airports, with the credit potentially rising to $2.00 per gallon if the fuel significantly reduces carbon emissions. To qualify, producers must submit proof of local production and purchase certifications from airlines, and any unused credit amounts will be refunded to the taxpayer. The legislation also defines specific terms for sustainable aviation fuel, requiring it to be made from renewable sources and eventually sourced from domestic feedstocks starting in 2030.