Purpose

• The bill updates Minnesota tax law to increase and manage the allocation of the credit for sustainable aviation fuel (SAF). It amends Minnesota Statutes 2024 section 41A.30, subdivision 5, to set new limits on how many SAF tax credit certificates can be issued each year and to extend the period during which unused credits can be allocated, with a final expiration.

Main provisions

• Allocation limits for SAF credits: For tax credits allowed under subdivision 2, the commissioner must not issue credit certificates in certain annual amounts for fiscal year 2025 and for fiscal years 2026 through 2029. The exact dollar amounts are specified in the statute.
• Carryover of unallocated credits: If the full amount authorized for a given year isn’t allocated, the remaining funds remain available for allocation through fiscal year 2030 until all are issued.
• Final expiration and cancellation: The commissioner cannot issue any SAF credit certificates for fiscal years beginning after June 30, 2030, and any unallocated amounts cancel on that date.

Significant changes to existing law

• Increases and clarifies annual caps on issuing SAF tax credit certificates.
• Adds a formal window (through 2030) for allocating unissued credits, preventing indefinite carryover.
• Establishes a firm sunset date after which no new SAF credits can be issued.

Practical impact

• Taxpayers and SAF project developers will have a defined, limited pool of SAF tax credits each year, with a defined end date for eligibility. Unused credits can be allocated up to 2030, after which no new credits will be issued.

Relevant terms (for context and search relevance)

credit certificates credit for sustainable aviation fuel (SAF) allocation limits fiscal year commissioner Minnesota Statutes 2024 section 41A.30 subdivision 5 unallocated amounts cancellation sunset date sustainable aviation fuel tax credit

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