This bill proposes the establishment of a refundable tax credit for eligible teachers in Minnesota, specifically targeting those who work in kindergarten through grade 12. The bill defines two categories of eligible teachers: full-year teachers, who must complete at least 150 student contact days and earn qualifying wages below $60,000, and part-year teachers, who must complete between 75 and 149 student contact days and earn qualifying wages below $30,000. Full-year teachers can receive a credit of $15,000, while part-year teachers can receive $7,500. If their qualifying wages exceed these thresholds, both types of teachers are eligible for a reduced credit of $2,000.

Additionally, the bill mandates that employers provide eligible teachers with a statement of their qualifying wages and student contact days by January 15 each year. It also includes provisions for the credit to be refundable, meaning that if the credit exceeds the teacher's tax liability, the excess will be refunded. The bill allows for annual inflation adjustments to the credit amounts and thresholds and introduces a process for advance payments of the credit, which can be elected by the taxpayer. The provisions of this bill will take effect for taxable years beginning after December 31, 2024.