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. 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 allows for each spouse in a married couple to claim the credit.

The bill also includes provisions for employers to provide statements of qualifying wages and student contact days to eligible teachers by January 15 each year. It mandates that if the credit exceeds a claimant's tax liability, the excess will be refunded, with appropriations made from the general fund to cover these refunds. Furthermore, the bill requires annual inflation adjustments to the threshold and credit amounts and allows for advance payments of the credit, which would be deducted from the total credit amount for the taxable year. The provisions of this bill will take effect for taxable years beginning after December 31, 2024.