MN HF2960

Establishes a refundable tax credit of $1.50 per gallon for sustainable aviation fuel produced or blended in Minnesota, with a maximum annual credit amount to be determined, expiring January 1, 2035.

Defines sustainable aviation fuel as liquid fuel meeting American Society for Testing and Materials standards, derived from biomass (excluding palm fatty acid distillates), and achieving at least 50 percent life cycle greenhouse gas emissions reduction compared to petroleum-based aviation fuel.

Exempts sustainable aviation fuel from sales tax for sales and purchases made after June 30, 2024, and before July 1, 2034.

Exempts materials, supplies, and equipment used in constructing or improving facilities that produce or blend sustainable aviation fuel from sales tax, with sales tax initially collected and then refunded.

Credits are refundable, meaning taxpayers can claim refunds exceeding their tax liability, with refunds paid from the general fund.