The bill modifies the existing tax credit for sustainable aviation fuel in Minnesota by increasing and extending the credit allocation. It amends Minnesota Statutes 2024, section 41A.30, across several subdivisions. Key changes include the definition of "sustainable aviation fuel," which now includes fuel derived from biomass or gaseous carbon oxides, and the introduction of a supplemental tax credit rate of $0.02 per gallon for each additional whole percentage carbon intensity reduction beyond 50%, capped at $0.50. The bill also establishes new allocation limits for tax credits, allowing up to $7,400,000 for each year through 2027 and $2,100,000 for each fiscal year from 2028 to 2035.

Additionally, the bill extends the expiration date for the tax credit program from December 31, 2030, to December 31, 2035, and allows any unallocated credit amounts to be carried forward into subsequent fiscal years until 2035. The effective date for these changes is retroactive for taxable years beginning after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before July 1, 2035.

Statutes affected:
Introduction: 41A.30
1st Engrossment: 41A.30