Capital Icon Minnesota Legislature
Office of the Revisor of Statutes

Office of the Revisor of Statutes

SF 1312

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 11/05/2025 01:44 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Version List SF1312 Authors and Status
PDF Rtf
Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12
2.13 2.14 2.15
2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 3.1 3.2 3.3 3.4 3.5 3.6
3.7 3.8 3.9
3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19
3.20 3.21 3.22
3.23 3.24 3.25
3.26 3.27 3.28

A bill for an act
 relating to taxation; modifying the credit for sustainable Next Previous aviation Next Previous fuel Next ; 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) " Previous Aviation Next gasoline" has the meaning given in section 296A.01, subdivision 7.

(d) "Commissioner" means the commissioner of agriculture.

(e) "Jet Previous fuel Next " 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 Previous sustainable Next Previous aviation Next Previous fuel Next ; or

(2) blending Previous sustainable Next Previous aviation Next Previous fuel Next with Previous aviation Next gasoline or jet Previous fuel Next .

(g) " Previous Sustainable Next Previous aviation Next Previous fuel Next " means liquid Previous fuel Next 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 Previous aviation Next gasoline, Previous aviation Next turbine Previous fuel Next , and jet Previous fuel Next as
determined by a test that shows:

(i) that the Previous fuel Next production pathway achieves at least a 50 percent life cycle greenhouse
gas emissions reduction in comparison with petroleum-based Previous aviation Next gasoline, Previous aviation Next
turbine Previous fuel Next , and jet Previous fuel Next 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 Previous fuel Next production process; or

(ii) that the Previous fuel Next 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 Previous sustainable Next Previous aviation Next fuels adopted by the
International Civil Previous Aviation Next 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 Previous sustainable Next Previous aviation Next Previous fuel Next 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 Previous sustainable Next Previous aviation Next
Previous fuel Next that is:

(1) produced in Minnesota or blended with Previous aviation Next or gasoline or jet Previous fuel Next in Minnesota;
and

(2) sold in Minnesota to a purchaser who certifies that the Previous sustainable Next Previous aviation Next Previous fuel Next is
for use as Previous fuel Next 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 Previous sustainable Next
Previous aviation Next Previous fuel Next , but not both. If Previous sustainable Next Previous aviation Next Previous fuel Next is blended with Previous aviation Next gasoline or
jet Previous fuel Next , the credit is allowed only for the portion of Previous sustainable Next Previous aviation Next Previous fuel Next that is included
in the blended Previous fuel Next .

(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 Previous sustainable Next Previous aviation Next Previous fuel Next 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 Previous sustainable Next Previous aviation Next Previous fuel Next 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 Previous sustainable Next Previous aviation Next Previous fuel sold after June 30, 2024, and before
July 1, 2035.
 new text end