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 with qualifying wages below $30,000. The credit amounts are set at $15,000 for full-year teachers and $7,500 for part-year teachers, with a reduced credit of $2,000 available for those whose wages exceed the threshold amounts. Additionally, the bill allows for each spouse in a married couple to claim the credit.

The bill also includes provisions for the annual adjustment of credit amounts for inflation, a requirement for employers to provide statements of qualifying wages to eligible teachers, and the possibility of advance payments of the credit. If the credit exceeds a claimant's tax liability, the excess will be refunded. The effective date for this legislation is set for taxable years beginning after December 31, 2024.