Enhanced tax credit could boost most-sustainable aviation fuel options

Several bills have come forward during this session that aim to enhance Minnesota’s existing state tax incentive for sustainable aviation fuel, also referred to as SAF.

These bills would expand and extend the existing SAF tax credit, and improve it in part by rewarding the lowest-carbon SAF options with an additional tax incentive.

If done well, these types of state-level SAF incentives can help improve water quality, biodiversity and farm prosperity while reducing greenhouse gas emissions in both the agricultural and transportation sectors. However, if done poorly, a state SAF strategy could undermine progress toward other sustainability goals.

We're advocating for SAF strategies that align with our guiding principles, with a particular focus on large-scale, near-term investments in feedstocks like camelina and pennycress — two types of winter-hardy oilseed being developed by the University of Minnesota’s Forever Green Initiative.

As explained in a recent MPR News story, these innovative cropping systems provide low-carbon SAF while helping to protect water quality, soil health and wildlife. Better still, farmers who grow them can diversify their income streams and increase farm profitability.

Winter-hardy oilseeds are more than just low carbon — they are our most sustainable near-term option.

We look forward to working with lawmakers as well as leadership from the Minnesota SAF Hub, Delta Airlines, state agencies, agricultural interests and other sustainability stakeholders to explore opportunities to help ensure camelina and pennycress have a place in our state’s SAF strategy.