Minnesota is poised to be a global leader in sustainable aviation fuel (SAF) production, and Senator John Jasinski (Faribault) is making sure the state seizes that opportunity with a bill (SF 1312) that offers a significant expansion of tax credits to grow the SAF industry, create thousands of jobs, and provide new markets for Minnesota farmers. The bill passed the Senate Taxes Committee on Thursday with bipartisan support. Senator Jasinski presented the bill to the committee, which is chief-authored by Democrat Senator Ann Rest (New Hope). 

“This is an economic jet engine for the state of Minnesota,” Sen. Jasinski said. “The potential benefits for Minnesota are massive: new facilities, thousands of jobs, and incredible new opportunities for farmers to sell their crops and repurpose waste materials. We aren’t trying to just meet the demand for sustainable aviation fuel in Minnesota; we are aiming to meet the global demand. We have the opportunity to keep Minnesota at the forefront of innovation and make sure our economy takes off right alongside it.”   

SAF is a cleaner alternative to traditional jet fuel, made from agricultural products, forestry waste, and other renewable sources. The bill builds on a tax credit for SAF production that was passed in 2023, bumping it from $2.1 million a year to $10 million annually through 2029. Any unused funds can roll over until 2030, giving businesses more time to tap into it.  

Minnesota has the resources like feedstocks such as corn, soybeans, camelina, forestry waste from northern Minnesota, plus the expertise to be a global leader in SAF. A new plant in Moorhead is set to open in 2030 with 650 jobs, with 4 to 5 more in development across Minnesota. Expanding tax credits will encourage the construction of additional plants, amplifying these gains.  

The bill now heads to the floor for a vote of full Senate.