MI SB0235

Creates 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, 2026

Increases the credit by $0.02 per gallon for each additional 1% reduction in life-cycle greenhouse gas emissions above 50%, up to a maximum credit of $2.00 per gallon

Requires taxpayers to obtain a tax credit certificate from the Department of Environment, Great Lakes, and Energy before claiming the credit

Allows refund of any credit amount that exceeds the taxpayer's tax liability for the year

Contingent on enactment of Senate Bill No. 236 of the 103rd Legislature (sustainable aviation fuel incentive program act)