This bill proposes a refundable income tax credit for certain teachers in Minnesota. It defines eligibility criteria for full-year and part-year teachers based on their teaching license status and the number of student contact days completed.

Key Provisions:

1. Eligible Teachers:

   • Must be K-12 teachers with a teaching position equivalent to at least 0.6 full-time.
   • Must hold a valid Tier 1, 2, 3, or 4 teaching license in Minnesota.
   • Full-year eligibility requires at least 150 student contact days; part-year eligibility requires 75 to 149 contact days.

2. Credit Amounts:

   • Full-year teachers earning below $60,000 receive a $15,000 credit.
   • Part-year teachers earning below $30,000 receive a $7,500 credit.
   • Teachers earning above these thresholds receive a flat credit of $2,000.
   • Both spouses in a married couple can claim this credit individually if eligible.

3. Employer Reporting Requirement:

   • By January 15, employers must provide teachers and the Department of Revenue with statements detailing a teacher’s qualifying wages and student contact days.

4. Refundable Credit:

   • If the credit exceeds the teacher’s tax liability, the excess amount will be refunded.
   • The funds for these refunds come from the state’s general fund.

5. Inflation Adjustments:

   • Threshold and credit amounts will be adjusted annually based on inflation.

6. Advance Payment Option:

   • Teachers may elect to receive advance payments of the credit.
   • If total advance payments exceed the final eligible credit, the taxpayer must repay the excess.

Overall Impact:

This bill aims to support Minnesota teachers by providing a financial incentive, particularly benefiting those earning below specified income thresholds.