Following the passage of federal tax credits for production of sustainable aviation fuel (SAF), state governments across the US have been implementing tax credits of their own to secure their place in the growing SAF industry.

The state tax credits are meant to stack on top of the federal producer’s tax credits created by the Inflation Reduction Act (IRA) of 2022, as well as Renewable Fuel Standard (RFS) credits that generate renewable identification numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits in California, Oregon and Washington.

Most state tax credits are intended for end users, but many state tax credit programs incentivize locally sourced feedstocks and SAF produced within the state.

Michigan

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