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 taxpayer," and outlines the criteria for what constitutes qualified sustainable aviation fuel, including requirements for greenhouse gas emissions reductions and sourcing from biomass or renewable energy sources.

Additionally, the bill sets a cap on the total amount of sustainable aviation fuel tax credits that can be approved, starting with a limit of $4.5 million for the 2025-2026 fiscal year and increasing to $9 million for subsequent years. It mandates that the department report annually on the program's effectiveness, detailing the total amount of tax credits certified and the number of applications received and approved. The bill includes penalties for false certifications related to the purchase of sustainable aviation fuel, ensuring accountability within the program.