SB 576 creates an energy efficiency revolving fund within Michigan's state treasury to finance state and local energy efficiency projects. The fund accepts state and federal money (including elective payments under federal law), keeps all money intact year-to-year, and prioritizes projects that reduce carbon emissions. State agencies applying for projects must follow strict rules, including capping administrative costs at 10% of project costs and reporting annual savings. The Department of Energy oversees the fund, coordinates project applications, and requires annual reports detailing funding, agencies, and projected savings. This fund directly supports state and local entities implementing energy-saving upgrades.
House Bill 4425 creates the Sustainable Aviation Fuel Incentive Program in Michigan. This program aims to encourage companies to produce or blend sustainable aviation fuel (SAF) within the state by offering corporate income tax credits. The Department of Environment, Great Lakes, and Energy (EGLE) will administer the program, certifying SAF that meets specific criteria, including source materials, technical standards, and a minimum 50% reduction in life-cycle greenhouse gas emissions compared to traditional jet fuel. The bill sets an annual cap on the total amount of tax credits approved, starting at $4.5 million for the 2025-2026 fiscal year and increasing to $9 million annually thereafter.
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.
SB 236 creates a tax credit program in Michigan to incentivize the production of sustainable aviation fuel (SAF). It directly affects fuel producers who meet specific environmental standards, requiring SAF to achieve at least a 50% reduction in life-cycle greenhouse gas emissions compared to petroleum fuel and comply with ASTM aviation fuel standards. Producers must apply to the Department of Environment, Great Lakes, and Energy for certification of their tax credit, providing evidence of domestic production, emissions reduction, and proof that the fuel was used in aircraft departing Michigan airports. The program administers tax credits through a state-certified process, aiming to boost local SAF production while meeting federal environmental benchmarks.
HB 5240 prohibits Michigan credit unions from denying, restricting, or canceling financial services to agriculture producers based on their greenhouse gas emissions, fertilizer use, or machinery type. It specifically targets credit unions that have made environmental, social, and governance (ESG) commitments, presuming such restrictions violate the law unless the credit union proves the decision was based solely on ordinary business reasons unrelated to ESG goals. Violations carry a civil fine of up to $10,000 per incident. The bill directly affects domestic credit unions and agriculture producers (defined as farm owners/operators under Michigan law), covering services like loans, deposits, and other financial products.
