Office of the Revisor of Statutes
SF 1312
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 11/05/2025 01:44 p.m.
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A bill for an act
relating to taxation; modifying the credit for sustainable aviation fuel; increasing
and extending the credit allocation; amending Minnesota Statutes 2024, section
41A.30, subdivisions 1, 2, 5, 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 41A.30, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Aircraft" has the meaning given in section 296A.01, subdivision 3.
(c) "Aviation gasoline" has the meaning given in section 296A.01, subdivision 7.
(d) "Commissioner" means the commissioner of agriculture.
(e) "Jet fuel" has the meaning given in section 296A.01, subdivision 8.
(f) "Qualifying taxpayer" means a taxpayer, as defined in section 290.01, subdivision
6, that is engaged in the business of:
(1) producing sustainable aviation fuel; or
(2) blending sustainable aviation fuel with aviation gasoline or jet fuel.
(g) "Sustainable aviation fuel" means liquid fuel that:
(1) is derived from biomass, as defined in section 41A.15, subdivision 2enew text begin , or gaseous
carbon oxidesnew text end ;
(2) is not derived from palm fatty acid distillates; and
(3) achieves at least a 50 percent life cycle greenhouse gas emissions reduction in
comparison with petroleum-based aviation gasoline, aviation turbine fuel, and jet fuel as
determined by a test that shows:
(i) that the fuel production pathway achieves at least a 50 percent life cycle greenhouse
gas emissions reduction in comparison with petroleum-based aviation gasoline, aviation
turbine fuel, and jet fuel utilizing the most recent version of Argonne National Laboratory's
Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model
that accounts for reduced emissions throughout the fuel production process; or
(ii) that the fuel production pathway achieves at least a 50 percent reduction of the
aggregate attributional core life cycle emissions and the positive induced land use change
values under the life cycle methodology for sustainable aviation fuels adopted by the
International Civil Aviation Organization with the agreement of the United States.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before
July 1, 2035.
new text end
Sec. 2.
Minnesota Statutes 2024, section 41A.30, subdivision 2, is amended to read:
Subd. 2.
Tax credit establishment.
(a) A qualifying taxpayer may claim a tax credit
against the tax due under chapter 290 equal to $1.50 for each gallon of sustainable aviation
fuel that is:
(1) produced in Minnesota or blended with aviation or gasoline or jet fuel in Minnesota;
and
(2) sold in Minnesota to a purchaser who certifies that the sustainable aviation fuel is
for use as fuel in an aircraft departing from an airport in Minnesota.
(b) The credit may be claimed only after approval and certification by the commissioner
and is limited to the amount stated on the credit certificate issued under subdivision 3. A
qualifying taxpayer must apply to the commissioner for certification and allocation of a
credit in a form and manner prescribed by the commissioner.
(c) A qualifying taxpayer may claim a credit for blending or producing sustainable
aviation fuel, but not both. If sustainable aviation fuel is blended with aviation gasoline or
jet fuel, the credit is allowed only for the portion of sustainable aviation fuel that is included
in the blended fuel.
(d) If the amount of credit that the taxpayer is eligible to receive under this section
exceeds the liability for tax under chapter 290, the commissioner of revenue must refund
the excess to the taxpayer.
new text begin
(e) A qualifying taxpayer may claim a supplemental tax credit rate against the tax due
under chapter 290 equal to $0.02 per gallon for each additional whole percentage carbon
intensity reduction beyond 50 percent, capped at $0.50.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before
July 1, 2035.
new text end
Sec. 3.
Minnesota Statutes 2024, section 41A.30, subdivision 5, is amended to read:
Subd. 5.
Allocation limits.
(a) For tax credits allowed under subdivision 2, the
commissioner must not issue credit certificates for more than:
(1) $7,400,000 fornew text begin each ofnew text end fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2025new text begin to 2027new text end ; and
(2) $2,100,000 for each of fiscal years deleted text begin 2026deleted text end new text begin 2028 tonew text end deleted text begin and 2027deleted text end new text begin 2035new text end .
(b) If the entire amount authorized under paragraph (a) is not allocated in new text begin that new text end fiscal yeardeleted text begin
2025 or 2026deleted text end , any remaining amount is new text begin carried forward into the next fiscal year and is
new text end available for allocation through fiscal year deleted text begin 2030deleted text end new text begin 2035new text end until the entire allocation has been
made. The commissioner must not issue any credit certificates for fiscal years beginning
after June 30, deleted text begin 2030deleted text end new text begin 2035new text end , and any unallocated amounts cancel on that date.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before
July 1, 2035.
new text end
Sec. 4.
Minnesota Statutes 2024, section 41A.30, subdivision 7, is amended to read:
Subd. 7.
Expiration.
This section expires for taxable years beginning after December
31, deleted text begin 2030deleted text end new text begin 2035new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before
July 1, 2035.
new text end