SB 236 Michigan Senate · 2025-2026 Regular Session

Corporate income tax: other; sustainable aviation fuel incentive program; create. Creates new act.

SB 236 creates a tax credit program in Michigan to incentivize the production of sustainable aviation fuel (SAF). It directly affects fuel producers who meet specific environmental standards, requiring SAF to achieve at least a 50% reduction in life-cycle greenhouse gas emissions compared to petroleum fuel and comply with ASTM aviation fuel standards. Producers must apply to the Department of Environment, Great Lakes, and Energy for certification of their tax credit, providing evidence of domestic production, emissions reduction, and proof that the fuel was used in aircraft departing Michigan airports. The program administers tax credits through a state-certified process, aiming to boost local SAF production while meeting federal environmental benchmarks.

Bill status passed 3 of 5 stages cleared

Introduction

Apr 2025

Committee Review

Jun 2025

Senate Passage

Jun 2025

House Passage

Governor

Introduced Apr 22, 2025 Last action Jun 25, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed by the Senate → Substitute (S-1) · 5 edits

MODERATE

This bill revision reorganizes the definition structure, clarifies that sustainable aviation fuel must be produced or blended in Michigan to qualify for tax credits, and adds a new requirement for the department to make its certification process available online. The changes streamline how applicants apply for credits and strengthen verification that fuel is produced within the state.

Scope change

The bill now explicitly requires that sustainable aviation fuel be produced or blended in Michigan to qualify for the tax credit, and adds a requirement for the department to publish its certification process on its website.

DEFINITION

Reorganized the definition structure by removing the old 'Income tax act of 1967' definition and renumbering remaining definitions, while adding a new definition for 'Qualified sustainable aviation fuel'.

REQUIREMENT

Changed the application requirements to specify that fuel must be 'produced or blended in this state' rather than just 'producing or blending' fuel, clarifying the geographic scope of eligibility.

Added a new requirement that the department must make its application, approval, and certification process available on its website.

TECHNICAL

Updated the ASTM International specification requirements to explicitly include both D7566 and D1655 standards for aviation fuel certification.

Reordered and renumbered subsections within the definitions section, moving the 'Sustainable aviation fuel incentive program' definition to a new subsection (h).

Floor votes · Senate Jun 25, 2025

How they voted

28–8

Passed · 2 other

Total votes 38

Jun 25, 2025

D Democratic19

18 Yea 1 Nay

94% Yea

R Republican19

10 Yea 7 Nay 2

52% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 25, 2025

Committee

referred to Committee on Transportation and Infrastructure

lower

Jun 25, 2025

Introduced

received on 06/25/2025

lower

Jun 25, 2025

Upper · Passed

PASSED ROLL CALL # 181 YEAS 28 NAYS 8 EXCUSED 1 NOT VOTING 0

upper

Jun 25, 2025

Upper · Passed

SUBSTITUTE (S-2) ADOPTED

upper

Jun 25, 2025

Amended

AMENDMENT(S) DEFEATED

upper

Jun 17, 2025

Upper · Passed

SUBSTITUTE (S-1) CONCURRED IN

upper

Jun 17, 2025

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-1)

upper

Jun 12, 2025

Committee

REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-1)

upper

Jun 12, 2025

Upper · Passed

REPORTED FAVORABLY WITH SUBSTITUTE (S-1) 6/11/2025

upper

Apr 22, 2025

Committee

REFERRED TO COMMITTEE ON NATURAL RESOURCES AND AGRICULTURE

upper

Apr 22, 2025

Introduced

INTRODUCED BY SENATOR JOSEPH BELLINO

upper

1 primary · 6 co-sponsors