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 part-year teachers, who must complete between 75 and 149 student contact days. The credit amounts are set at $15,000 for eligible full-year teachers earning below a specified threshold of $60,000, and $7,500 for eligible part-year teachers earning below a threshold of $30,000. Teachers whose qualifying wages exceed these thresholds will receive a reduced credit of $2,000. 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 a mechanism for advance payments of the credit. If the credit exceeds a taxpayer's tax liability, the excess will be refunded. The effective date for this legislation is set for taxable years beginning after December 31, 2024.