The proposed bill establishes a "sustainable aviation fuel incentive program" aimed at promoting the production of sustainable aviation fuel (SAF) in Michigan. The program will be administered by the Department of Environment, Great Lakes, and Energy, which will develop an application and certification process for tax credits related to SAF production. The bill defines key terms such as "sustainable aviation fuel," "qualified sustainable aviation fuel," and "qualified taxpayer," and outlines the requirements for producers to claim tax credits, including evidence of production and compliance with sustainability standards.

Additionally, the bill sets a cap on the total amount of tax credits that can be approved, limiting it to $4.5 million for the 2025-2026 fiscal year and $9 million for each subsequent fiscal year. It mandates that the department report annually on the program's operations and effectiveness, detailing the total amount of tax credits certified and the number of applications received and approved. The bill emphasizes the importance of reducing greenhouse gas emissions associated with aviation fuel, requiring that sustainable aviation fuel achieves at least a 50% reduction in life-cycle emissions compared to traditional petroleum-based fuels.