House Bill 4424 proposes a new corporate income tax credit for businesses that produce or blend sustainable aviation fuel (SAF) within Michigan. Qualified taxpayers can claim a credit of $1.50 per gallon for SAF produced or blended in the state and sold for use in aircraft departing from Michigan airports. This credit can increase up to $2.00 per gallon based on the SAF's life-cycle greenhouse gas emission reductions. If the credit amount exceeds a company's tax liability, the difference will be refunded.
SB 269 amends Michigan's Aeronautics Code (MCL 259.135) to allow qualified airports to directly accept, receive, and disburse certain federal airport funds without channeling them through the state commission, provided federal rules permit it. This change specifically applies to airports that meet federal eligibility requirements and are authorized to handle funds directly under federal law. The bill streamlines the funding process for these airports by removing the requirement to use the state commission as an agent for eligible federal grants. It does not alter funding amounts or create new programs, but adjusts administrative procedures for airport authorities. This procedural change affects qualified airports seeking direct federal funding for airport projects.
SB 153 exempts certain aircraft parts and materials from Michigan's use tax when affixed to qualifying aircraft used by domestic air carriers. It applies to aircraft meeting specific weight requirements (e.g., 6,000+ pounds for post-1996 taxes) used for cargo, passenger transport, or mixed purposes. The bill also creates tax exemptions for aircraft temporarily in Michigan for maintenance, sales, or repairs (if removed within 15 days) and for interstate trucking equipment meeting usage criteria. These changes directly affect air carriers and motor carriers operating across state lines by reducing their tax burden on qualifying equipment purchases.
HB 4184 increases Michigan's excise tax on aviation fuel from 3.10 cents to 4.00 cents per gallon. It directly affects fuel sellers, airlines, and airport operators by changing how this tax revenue is distributed. The bill modifies Section 203 of the Aeronautics Code to require 35% of the tax revenue to fund the state aeronautics fund and 65% to fund qualified airports. It also retains the 1.5-cent refund for airlines operating interstate flights and the exemption for fuel used in leaded racing fuel production.
HB 4119 exempts sales of large aircraft (over 6,000 pounds) and certain parts/materials attached to them from Michigan's sales tax when used by commercial airlines for passenger or cargo transport. It specifically applies to domestic air carriers operating under federal aviation rules, covering both new aircraft purchases and maintenance-related transactions. Key conditions include requiring aircraft to leave Michigan within 15 days of temporary use (e.g., for evaluation or repairs) and ensuring they were not based or registered in Michigan before or after the transaction. This policy change directly affects commercial airlines and aircraft sellers, reducing tax liability on qualifying equipment purchases and maintenance services.
HB 4120 exempts certain aircraft purchases and maintenance from Michigan's use tax. It applies to domestic air carriers using aircraft over 6,000 pounds for cargo, passenger, or combined transport, and to parts/materials affixed to such aircraft under specific conditions (e.g., aircraft not based in Michigan). The bill also exempts temporary aircraft in Michigan for maintenance or sales if they leave within 15 days, and extends tax exemptions to interstate trucking equipment used across state lines. These changes reduce tax burdens for airlines, aircraft maintenance providers, and interstate trucking companies operating in Michigan.
HB 4210 amends Michigan's sales tax distribution rules to adjust funding for the Comprehensive Transportation Fund. It changes the percentage of sales tax revenue from car-related purchases (fuels, vehicles, parts/accessories sold by dealers/gas stations) allocated to this fund: 27.9% until September 2025, 60% for fiscal year 2025-2026, then 25% annually starting October 2026. The bill also maintains existing allocations for school aid (60%), city revenue sharing (15%), and specifies that 35% of aviation fuel tax revenue goes to the State Aeronautics Fund while 65% funds qualified airports. These changes directly affect businesses selling vehicles, fuel, and parts, and govern how transportation funding is structured.
SB 235 creates a corporate income tax credit for businesses that use sustainable aviation fuel (SAF). It directly affects airlines and fuel producers in Michigan by reducing their state tax liability based on the volume of SAF they utilize. The bill amends Michigan's tax code (MCL 206.1-206.847) to add a specific provision allowing corporations to claim this credit. This provides a financial incentive for adopting SAF, aiming to support cleaner aviation fuel adoption without specifying environmental outcomes.
