The Minnesota legislature recently promoted a bill that could propel the state's sustainable aviation sector with new incentives for producers.
The Minnesota Senate Taxes Committee approved legislation in early March 2025 to expand an existing tax credit to encourage the increased production of sustainable aviation fuel (SAF).
The current law, which applied a $1.50-per-gallon tax incentive to biomass-derived SAF that achieved at least a 50% reduction in life-cycle greenhouse gas pollution, was originally set to expire on June 30, 2030.
Now, it has been extended to July 1, 2035, and includes an additional provision allowing qualified taxpayers to claim an additional 2 cents per gallon for each percentage point above the base 50% threshold, capping at 50 cents per gallon.
"Sustainable aviation fuel has the potential to rapidly decarbonize the aviation industry, provide additional revenue streams for a wide array of farmers, communities, and industries, and create good-paying jobs throughout Minnesota," Sen. Robert Kupec (D-MN), one of the co-sponsors of the bill, said in an official statement.
Sen. John Jasinski, another co-sponsor, also emphasized the bill's potential to bolster job creation and expand opportunities for farmers across the state to support crop production and eliminate waste, calling it an "economic jet engine for the state of Minnesota."
Not only has Minnesota taken steps to support SAF, but companies nationwide are taking action to bolster the industry and decarbonize aviation, which contributes about 2.5% of current global CO₂ pollution.
Companies such as fixed-base operator AvFlight and the Avfuel Corporation are already collaborating to consistently offer SAF on a mass-produced scale.
The government offers similar tax incentives to taxpayers to support clean energy investments such as solar panels and electric vehicles through the Inflation Reduction Act, which can earn up to $20,000, which you can learn more about in our TCD Guide.
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