MN SF2753

Establishes a $1.50 per gallon refundable tax credit for sustainable aviation fuel produced or blended in Minnesota, with an unspecified annual cap, effective for taxable years beginning after December 31, 2023, and 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.

Provides a sales tax exemption on materials, supplies, and equipment used in constructing or improving Minnesota facilities that produce or blend sustainable aviation fuel, with tax collected and then refunded to eligible applicants.

Limits the credit to qualifying taxpayers engaged in producing or blending sustainable aviation fuel, with credits passed through to partners, members, and shareholders on a pro rata basis.