SF 1312 Minnesota Senate · 2025-2026 Regular Session

Allocation increase for the credit for sustainable aviation fuel

This bill increases Minnesota's funding cap for tax credits supporting sustainable aviation fuel producers. It raises the annual allocation limit from $2.1 million to $10 million for fiscal years 2026 through 2029 (up from $2.1 million to $10 million annually). The change applies directly to companies producing sustainable aviation fuel within Minnesota, making more funding available for their tax credits. The amendment modifies Minnesota Statutes section 41A.30, adjusting the annual spending limit for this specific credit program. The change takes effect after final enactment.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 13, 2025 Last action Mar 3, 2025
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What changed between versions

Introduction 1st Engrossment · 4 edits · Mar 3, 2025
MODERATE
This bill was amended from its introduction to its first engrossment to significantly expand the Sustainable Aviation Fuel (SAF) tax credit program. The changes increase the total funding allocation, extend the program's duration, and introduce a new tiered credit rate for fuels with higher greenhouse gas reductions. Additionally, the effective date was changed to apply retroactively to a specific period, allowing taxpayers to claim credits for fuel sold after June 2024.
Scope change
The bill's scope expanded from a two-year program (2025-2026) to a seven-year program (2025-2035), and the credit eligibility now includes a supplemental rate for fuels exceeding a 50% emissions reduction threshold.
FISCAL

The total credit allocation was increased from $9.5 million to $22.1 million, and the program was extended from fiscal years 2025-2026 to 2025-2035.

A new supplemental tax credit of up to $0.50 per gallon was added for SAF that achieves more than a 50% life cycle greenhouse gas emissions reduction.

TIMELINE

The effective date was changed from the day after enactment to a retroactive period covering taxable years after December 31, 2023, for fuel sold between July 1, 2024, and June 30, 2035.

SCOPE

The expiration date of the program was extended from December 31, 2030, to December 31, 2035.

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Full legislative history

Actions timeline

Total actions
4
Key actions
1
Committee
2
Mar 3, 2025
Upper · Passed
Comm report: To pass as amended
upper
Feb 13, 2025
Committee
Referred to Taxes
upper
Feb 13, 2025
Introduced
Introduction and first reading
upper
1 primary · 4 co-sponsors

Sponsors