The bill establishes a two-year income tax holiday for eligible direct support professionals in Minnesota, applicable for taxable years beginning after December 31, 2022, and before January 1, 2025. Eligible individuals can elect to receive an exemption from the individual income tax under Minnesota Statutes, chapter 290. To qualify, a direct support professional must have been employed at an eligible facility for at least 1,000 hours during the taxable year, have an adjusted gross income not exceeding $75,000 (or $150,000 for married couples filing jointly), and be an employee as defined in the relevant statutes.

The bill defines "eligible facilities" to include nursing facilities, assisted living facilities, adult foster care, community residential settings, and intermediate care facilities for individuals with developmental disabilities. Additionally, it clarifies that eligible direct support professionals who qualify for a refundable credit exceeding their tax liability can still file and claim a return for the taxable year. The definitions in Minnesota Statutes, section 290.01, will apply to this section, and the provisions will take effect as specified.