MI SB0447

Allows qualified taxpayers to claim a $1.50 per gallon tax credit for sustainable aviation fuel produced or blended in Michigan and sold for use in aircraft departing from Michigan airports, effective for tax years beginning January 1, 2025.

Credit increases by $0.02 per gallon for each additional 1% reduction in life-cycle greenhouse gas emissions above 50%, with a maximum credit of $2.00 per gallon.

Requires taxpayers to apply to the Department of Environment, Great Lakes, and Energy within 2 months after tax year-end for certification, with purchasers certifying the fuel was bought for aircraft use in Michigan.

Caps credit approvals at $4,500,000 for the 2025-2026 fiscal year and $9,000,000 annually thereafter; credits exceeding tax liability are refunded.

Defines sustainable aviation fuel as aviation fuel derived from biomass, waste streams, renewable energy, or gaseous carbon oxides that meets ASTM standards and achieves at least 50% greenhouse gas emissions reduction compared to petroleum-based aviation fuel.