Aviation fuel credit sustainable, and certain taxpayers excluded from qualifying for the credit.

A bill for an act

relating to taxation; sustainable aviation fuel credit; excluding certain taxpayers

from qualifying for the credit; amending Minnesota Statutes 2024, section 41A.30,

subdivision 1.

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)
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Except as provided in paragraph (h),
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"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 2e
;

(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.

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(h) For purposes of paragraph (f), qualifying taxpayer does not include a taxpayer that:

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(1) agrees by contract to provide air transportation services for a federal agency

conducting activities related to immigration enforcement at any time during the taxable

year; or

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(2) sells sustainable aviation fuel to an air transportation services business described in

clause (1).

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2025.

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