A bill heard in the Minnesota House Tax Committee would expand Minnesota’s sustainable aviation fuel tax credit. This tax credit was created three years ago to incentivize the production of SAF, but no one has applied for it. The state’s two largest general farm organizations testified for the bill. Minnesota Farmers Union Vice President Anne Schwagerl said this is a win-win-win scenario. “We’re facing a crisis in farm country right now, with low crop prices, high input costs, and the loss of international markets,” said Schwagerl. “This is an opportunity to create a new domestic market for our agricultural products that will be meaningful to farmers across the state, as well as the next generation of producers.” Minnesota Farm Bureau Federation President Dan Glessing said sustainable aviation fuel builds another domestic market for farmers at a time when margins are tight. “Creating new demand here at home benefits farmers directly; it helps strengthen commodity values, supports more processing and value-added activity, and gives farmers another pathway to stay competitive in an ever-changing economy.” The bill was laid over for possible inclusion in an omnibus tax bill.
