The Minnesota Sustainable Aviation Fuel (SAF) Tax Credit provides state tax credit to qualifying taxpayers for producing or blending SAF in the state between July 1, 2024, and June 30, 2030.
What is sustainable aviation fuel?
SAF is liquid fuel that:
- Is derived from biomass, as defined in Minn. Stat. 41A.15, subd. 2e
- Is not derived from palm fatty acid distillates
- Reduces at least 50% life cycle greenhouse gas emissions
Who qualifies?
To qualify for the tax credit, you must either:
- Produce SAF, or
- Blend SAF with aviation, gasoline, or jet fuel
How do I calculate the credit?
The SAF Tax Credit is a refundable tax credit.
Your credit amount equals $1.50 for each gallon of SAF that is both:
- Produced in Minnesota or blended with aviation, gasoline, or jet fuel in Minnesota, AND
- Sold in Minnesota to a purchaser who certifies that the SAF is for use as fuel in an aircraft departing from an airport in Minnesota
Note: A qualifying taxpayer may claim a credit for either blending or producing SAF. If SAF is blended with aviation, gasoline, or jet fuel, the credit is allowed only for the portion of SAF that is included in the blended fuel.
How do I claim the credit?
- Request the SAF Tax Credit form by emailing Megan Lennon (megan.lennon@state.mn.us).
- Complete and return the form to the MDA within two months after the close of your taxable year.
- Within 30 days, we will either issue a credit certificate, request additional information, or reject the application.
- Include the credit certificate when you file your Minnesota tax return.
