By Scout Nelson
Minnesota is taking another step toward cleaner energy by improving its Sustainable Aviation Fuel (SAF) program. During the 2026 legislative session, lawmakers approved updates to the state's existing SAF tax credit through HF2438. The changes encourage the production of lower-carbon aviation fuel while creating new opportunities for farmers and renewable fuel producers.
The updated tax credit rewards producers that achieve carbon emission reductions greater than the original 50% requirement. By offering additional incentives for cleaner fuel production, the legislation encourages companies to invest in more sustainable technologies and practices that reduce greenhouse gas emissions.
The new law also includes several environmental protections. It prevents producers from using captured carbon for enhanced oil recovery, helping ensure the program focuses on reducing emissions rather than supporting additional fossil fuel production. The legislation also discourages clearing new land for fuel production and instead encourages the use of existing farmland.
Another important improvement expands eligibility for producers using renewably produced hydrogen during sustainable aviation fuel production. This change supports cleaner manufacturing methods while helping strengthen Minnesota’s renewable energy industry.
The updated policy also creates new opportunities for farmers who grow emerging continuously living crops being developed by the University of Minnesota. These crops provide renewable materials for cleaner aviation fuels while delivering additional environmental benefits. They help improve soil health, protect water quality, and support healthier watersheds throughout Minnesota and downstream communities.
The legislation reflects a balanced approach that supports both agriculture and environmental conservation. Farmers can benefit from new market opportunities while producers receive incentives to develop cleaner fuel products that meet higher sustainability standards.
Conservation Minnesota supports these improvements as part of its long-term effort to strengthen sustainable biofuel production across the state. The organization also plans to continue working with partners to encourage future improvements that promote cleaner energy, responsible farming practices, and stronger environmental protection.
Photo Credit: vista-mipan
Categories: Minnesota, Crops, Energy, Sustainable Agriculture