The bill establishes a two-year income tax holiday specifically for eligible police officers in Minnesota, applicable for taxable years beginning after December 31, 2022, and before January 1, 2025. Eligible police officers are defined as individuals who have worked at least 1,000 hours in Minnesota as peace officers and whose adjusted gross income does not exceed $75,000 (or $150,000 for married couples filing jointly). The bill allows these officers to elect an exemption from the individual income tax under Minnesota Statutes, chapter 290, and permits those eligible for a refundable credit exceeding their tax liability to still file and claim a return.

Additionally, the bill clarifies that the definitions in Minnesota Statutes, section 290.01, will apply to this section. The effective date of the provisions outlined in the bill is specified to be for taxable years starting after December 31, 2022, and before January 1, 2025.