Conservation Minnesota has long championed more sustainable biofuel production in our state—and the 2026 legislative session delivered a meaningful step forward.
This year, there was an opportunity to strengthen the state’s existing Sustainable Aviation Fuel (SAF) tax credit through HF2438. The bill improved the tax credit by adding additional tax credits to fuels that reduce their carbon emissions beyond the 50% reduction required by the initial SAF tax credit.
The legislation prohibits producers from using the carbon captured during SAF production for enhanced oil recovery, discourages clearing new land for production and incentivizes the use of existing farmland, and expands the use of renewably produced hydrogen for the tax credit.
These legislative changes enhance opportunities for farmers and producers who use emerging continuously living crops being developed by the University of Minnesota. These crops don’t just provide raw materials for cleaner fuels; they can significantly improve water quality in their local watersheds and communities downstream.
Conservation Minnesota was proud to support this legislation alongside a broad coalition of partners. We will continue working to strengthen the sustainability of biofuels produced in Minnesota in the years ahead.