This bill proposes the establishment of a tax credit program in Minnesota aimed at supporting graduates of aerospace and aviation-related educational programs, as well as their employers. The new legal language introduces a section in Minnesota Statutes, chapter 290, titled "Aerospace and Aviation Credit," which defines key terms such as "Aerospace," "Aviation," "Qualified Employee," and "Qualified Employer." The bill allows qualified employees to claim a tax credit of $5,000 annually for the first five years of employment with a qualified employer, with provisions for credit carryover if the amount exceeds tax liability. Additionally, qualified employers can receive credits for tuition reimbursement and compensation paid to qualified employees, with specific limitations on the amounts and conditions under which these credits can be claimed.

The bill also mandates annual reports starting January 15, 2028, to assess the effectiveness and cost of the tax credit program, and it sets an expiration date for new credits earned after December 31, 2030, while allowing claims for credits until January 1, 2035. The effective date for the provisions of this section is set for taxable years beginning after December 31, 2025. Overall, the bill aims to incentivize employment in the aerospace and aviation sectors by providing financial benefits to both employees and employers.