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," "biomass," and "qualified taxpayer," and outlines the criteria that SAF must meet, including a minimum 50% reduction in life-cycle greenhouse gas emissions compared to petroleum-based aviation fuel.

Additionally, the bill sets a cap on the total amount of SAF tax credits that can be approved, starting with $4.5 million for the 2025-2026 fiscal year and increasing to $9 million for subsequent years. It mandates that applicants submit evidence of their SAF production and provides penalties for false certifications. The Department is also required to report annually on the program's effectiveness, including the total amount of tax credits certified and the number of applications processed. The act will only take effect if related legislation is enacted.