SB 236 — Corporate income tax: other; sustainable aviation fuel incentive program; create. Creates new act.

SB-236, As Passed Senate, June 25, 2025 SUBSTITUTE FOR SENATE BILL NO.

(b) "Biomass" means any organic matter that is available on a KAS S01436'25 (S-1)(S-2)_SB236_APS_1 40fvnqywcrot 1 renewable or recurring basis, including agricultural crops and trees;

animal waste;fat;

(e) "Qualified"Income sustainabletax aviationact fuel"of 1967" means sustainable aviation fuel that the departmentincome determines,tax basedact uponof evidence1967, submitted1967 byPA the281, applicantMCL under206.1 sectionto 5,206.847. meets the definition of sustainable aviation fuel.

(f) "Qualified taxpayer"sustainable aviation fuel" means aviation fuel that termthe asdepartment definedcertifies, based upon evidence submitted by the applicant under section 6785, meets the definition of sustainable aviation fuel and satisfies the incomerequirements taxin actsubsection (1) of 1967the PAsustainable 281,aviation MCLfuel 206.678.tax credit.

(g) "Sustainable"Qualified aviationtaxpayer" fuel" means aviationthat fuelterm thatas satisfiesdefined allunder section 678 of the following:income tax act of 1967, MCL 206.678.

(h) "Sustainable aviation fuel" means aviation fuel that satisfies all of the following:

(ii) Meets the requirements of the ASTM International D7566 "Standard Specification for Aviation Turbine Fuel Containing KAS S01436'25 (S-2)_SB236_APS_1 ywcrot 1 Synthesized Hydrocarbons" or D1655 "Standard Specification for Aviation Turbine Fuels".

(iii) Achieves at least a 50% life-cycle greenhouse gas KAS S01436'25 (S-1) 40fvnq 1 emissions reduction in comparison with petroleum-based aviation fuel, as determined by any of the following:

(h)(i) "Sustainable aviation fuel incentive program" or "program" means the program created under section 5.

(i)(j) "Sustainable aviation fuel tax credit" means the tax credit allowed under section 678 of the income tax act of 1967, 1967 PA 281, MCL 206.678.

(j)(k) "Tax year" means that term as defined in section 611 of the income tax act of 19671967, PA 281, MCL 206.611.

The department shall administer the program and develop and use an application, approval, and certification process for the approval of sustainable aviation fuel tax credits and make KAS S01436'25 (S-2)_SB236_APS_1 ywcrot 1 that process available on the department's website.

(2) A person seeking to claim a sustainable aviation fuel tax credit shall, within 2 months after the close of the person's tax KAS S01436'25 (S-1) 40fvnq 1 year and in a form and manner as prescribed by the department, submit an application to the department for approval and certification of the number of gallons of sustainable aviation fuel produced or blended in this state and sold during the tax year that meetsatisfies the requirements toin besubsection certified(1) asof qualifiedthe sustainable aviation fuel tax credit, and the amount of the sustainable aviation fuel tax credit allowed to be claimed by the applicant.

(a) Evidence that the person is engaged in the business of producing or blending sustainable aviation fuel in this state and that the sustainable aviation fuel sold during the tax year for which the credit is sought to be claimed wassatisfies producedthe orrequirements blended in thissubsection state.(1) of the sustainable aviation fuel tax credit.

(b) Evidence that the sustainable aviation fuel is qualified sustainable aviation fuel and, for a person seeking the increased credit,credit evidenceunder thatsubsection the(2) qualifiedof the sustainable aviation fuel hastax morecredit, thanevidence aof 50%the total percentage reduction in life-cycle greenhouse gas emissions reduction.above 50%.

(c) Copies of each purchaser's certification that the qualified sustainable aviation fuel purchased in this state from that person was purchased for use as fuel in an aircraft departing from an airport in this state.

(3) For purposes of the purchaser's certification required under subsection (2),(2)(c), if the purchaser is a wholly owned subsidiary of an airline operator, the purchaser may make the certification required under thissubsection section(2)(c) based on information KAS S01436'25 (S-2)_SB236_APS_1 ywcrot 1 from the airline operator that the qualified sustainable aviation fuel was purchased for use in an aircraft departing from an airport in this state.

If a purchaser makes a certification required under thissubsection section(2)(c) that KAS S01436'25 (S-1) 40fvnq 1 it knows or has reason to know is false, any person responsible for preparing or submitting that certification is guilty of a misdemeanor punishable by imprisonment for not more than 1 year, a fine of not more than $1,000.00, or both.

A purchaser that is a wholly owned subsidiary of an airline operator that makes a certification required under thissubsection section(2)(c) based on information from that airline operator is deemed to have the same knowledge of the accuracy of such information as the airline operator.

(b) The sustainable aviation fuel for which the credit is KAS S01436'25 (S-2)_SB236_APS_1 ywcrot 1 being claimed by the qualified taxpayer is qualified sustainable aviation fuel.

(c) The total amount of the qualified sustainable aviation fuel that was produced or blended and sold in this state during the KAS S01436'25 (S-1) 40fvnq 1 tax year by the qualified taxpayer and the maximum amount of the sustainable aviation fuel tax credit allowed to be claimed by the qualified taxpayer for the designated tax year.

This act does not take effect unless KAS S01436'25 (S-2)_SB236_APS_1 ywcrot Senate Bill No.

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