Aviation fuel credit sustainable, and certain taxpayers excluded from qualifying for the credit.

This bill amends Minnesota's sustainable aviation fuel credit program by clarifying who qualifies for the tax incentive. It defines eligible taxpayers as those producing or blending sustainable aviation fuel, which must be derived from biomass, exclude palm fatty acid distillates, and achieve at least a 50 percent reduction in greenhouse gas emissions compared to traditional petroleum-based fuels. The legislation also excludes from the credit any taxpayer that contracts to provide air transportation services for federal immigration enforcement agencies or sells sustainable aviation fuel to such businesses. These provisions will take effect for taxable years beginning after December 31, 2025.