This bill proposes the establishment of a tax credit program in Minnesota aimed at supporting graduates of aerospace and aviation-related educational programs and 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, provided they meet specific criteria related to their education and employment status. Additionally, qualified employers can receive credits for tuition reimbursement and compensation paid to qualified employees, with certain limitations on the amounts and conditions for claiming these credits.

The bill also mandates annual reports starting January 15, 2028, from the commissioner to legislative committees on the effectiveness and costs of the tax credit program. Furthermore, it establishes an expiration date for the credits, stating that no new credits may be earned for taxable years beginning 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.