HB 4424 Michigan House · 2025-2026 Regular Session

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

House Bill 4424 proposes a new corporate income tax credit for businesses that produce or blend sustainable aviation fuel (SAF) within Michigan. Qualified taxpayers can claim a credit of $1.50 per gallon for SAF produced or blended in the state and sold for use in aircraft departing from Michigan airports. This credit can increase up to $2.00 per gallon based on the SAF's life-cycle greenhouse gas emission reductions. If the credit amount exceeds a company's tax liability, the difference will be refunded.

Bill status in committee 1 of 4 stages cleared

Introduction

May 2025

Committee Review

Floor Vote

Governor

Introduced May 6, 2025 Last action Dec 16, 2025

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What changed between versions

House Introduced Bill → Substitute (H-2) · 4 edits

MODERATE

The bill was amended to extend the credit's availability from 2025 to 2026-2035 and added a requirement that the Department of Environment, Great Lakes, and Energy must issue a certificate before a taxpayer can claim the credit. The definition of a 'qualified taxpayer' was updated to reflect this new certification process, and the bill's effective date was changed to depend on the passage of a companion House Bill.

Scope change

The scope of the credit was expanded by adding a specific end date (January 1, 2036) and a new prerequisite certification step that was not in the original version.

TIMELINE

The credit period was changed from starting on January 1, 2025, to starting on January 1, 2026, and ending before January 1, 2036.

REQUIREMENT

A new requirement was added stating that a taxpayer cannot claim the credit unless the Department of Environment, Great Lakes, and Energy has first issued a tax credit certificate to them.

DEFINITION

The definition of 'qualified taxpayer' was updated to require that the taxpayer has been issued a tax credit certificate, and a new definition for 'tax credit certificate' was added.

ENFORCEMENT

The condition for the bill to take effect was changed from requiring two companion bills to only requiring House Bill No. 4425.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Dec 16, 2025

Committee

referred to second reading

lower

Dec 16, 2025

Lower · Passed

reported with recommendation with substitute (H-2)

lower

May 6, 2025

Committee

referred to Committee on Transportation and Infrastructure

lower

May 6, 2025

Introduced

introduced by Representative Rep. Jerry Neyer

lower

1 primary · 17 co-sponsors