The Minnesota House of Representatives Taxes Committee recently conducted a hearing to discuss H.F. 1669, a bill intended to broaden and lengthen the state’s incentives for sustainable aviation fuel. While the current policy offers a set credit for biomass-derived fuels, the new proposal introduces a tiered system that rewards producers for achieving even greater reductions in lifecycle greenhouse gas emissions. Agricultural advocates, including representatives from the Minnesota Farmers Union and the Minnesota Farm Bureau, testified that these enhancements could provide a vital new market for local farmers, particularly through the cultivation of winter cover crops like camelina and pennycress.
By extending the availability of these tax credits through 2035 and increasing the total funding allocation, supporters aim to provide the long-term policy certainty necessary to attract major production facilities to the region. The legislation also proposes expanding the definition of eligible fuels to include advanced technologies, such as those utilizing green hydrogen and captured carbon dioxide. Proponents emphasize that strengthening the SAF industry will not only help the state meet its climate goals but also bolster the rural economy by creating high-tech jobs and increasing the value of agricultural commodities without impacting the food supply.
Sustainable aviation fuels are key to energy independence and generate job creation in tech, agriculture and other parts of the economy.
