MN SF2365

Creates a $5,000 annual income tax credit for qualified employees in the aerospace and aviation sector for their first through fifth consecutive years of employment, with carryover provisions for unused credits up to four additional years.

Allows qualified employers a tax credit equal to 50 percent of tuition reimbursed to qualified employees, capped at 50 percent of the average annual enrollment and instruction costs in a qualified program.

Provides qualified employers a 10 percent tax credit on compensation paid to qualified employees, with a maximum of $15,000 per employee annually for the first through fifth years of employment.

Requires the Minnesota tax commissioner to submit annual reports beginning January 15, 2026, to legislative tax committees detailing the cost and effectiveness of the tax credit program.

Credits expire December 31, 2028, for new earnings, with existing credits claimable through December 31, 2032, and the entire section expiring January 1, 2033.