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 requirements for SAF to qualify for tax credits, 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 the department report annually on the program's effectiveness, including the total amount of tax credits certified and the number of applications received and approved. The bill also includes penalties for false certifications related to SAF purchases.