MI SB0236

Creates the Sustainable Aviation Fuel Incentive Program administered by the Department of Environment, Great Lakes, and Energy to encourage production of sustainable aviation fuel in Michigan

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

Beginning January 1, 2030, sustainable aviation fuel must be derived from domestic feedstock resources

Caps program tax credits at $4,500,000 for the 2025-2026 fiscal year and $9,000,000 annually for subsequent fiscal years

Requires annual reporting to legislative committees on program effectiveness, including total credits certified and number of applications approved

Imposes misdemeanor penalties (up to 1 year imprisonment and/or $1,000 fine) for knowingly submitting false certifications regarding fuel purchases