HF 3619

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/23/2026 04:47 p.m.

A bill for an act
relating to agriculture; requiring the Environmental Quality Board to order a generic
environmental impact statement on sustainable aviation fuel; placing a temporary
moratorium on sustainable aviation fuel tax credit and grants; amending Minnesota
Statutes 2024, section 41A.30, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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) new text begin A qualifying taxpayer must apply to the commissioner for the certification and
allocation of a tax credit in a form and manner prescribed by the commissioner. new text end The credit
deleted text begin may be claimed only after approval and certification by the commissioner and deleted text end is limited to
the amount stated on the credit certificate issued under subdivision 3 deleted text begin . A qualifying taxpayer
must apply to the commissioner for certification and allocation of a credit in a form and
manner prescribed by the commissioner. deleted text end new text begin and may be claimed only after:
new text end

new text begin (1) approval and certification by the commissioner; and
new text end

new text begin (2) the Environmental Quality Board completes a generic environmental impact statement
on sustainable aviation fuel.
new text end

(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.

Sec. 2. new text begin TEMPORARY MORATORIUM ON DEPARTMENT OF AGRICULTURE
GRANTS TO SUSTAINABLE AVIATION FUEL PRODUCERS AND BLENDERS.
new text end

new text begin The commissioner of agriculture must not award any grant to a producer or blender of
sustainable aviation fuel before the Environmental Quality Board completes a generic
environmental impact statement on sustainable aviation fuel.
new text end

Sec. 3. new text begin GENERIC ENVIRONMENTAL IMPACT STATEMENT ON SUSTAINABLE
AVIATION FUEL.
new text end

new text begin The Environmental Quality Board must order a generic environmental impact statement
to review the environmental impact of the production and use of sustainable aviation fuel
as defined by Minnesota Statutes, section 41A.30, subdivision 1, paragraph (g).
new text end