MN SF3918

Establishes a refundable tax credit for kindergarten through grade 12 teachers holding valid Tier 1-4 teaching licenses with positions equivalent to at least 0.6 full-time equivalent.

Full-year teachers completing at least 150 student contact days annually receive a $15,000 credit if qualifying wages are below $60,000, or a $2,000 credit if wages exceed $60,000.

Part-year teachers completing 75-149 student contact days annually receive a $7,500 credit if qualifying wages are below $30,000, or a $2,000 credit if wages exceed $30,000.

Employers must provide eligible teachers with annual statements by January 15 documenting qualifying wages and student contact days from the previous calendar year.

Credit is fully refundable, meaning excess amounts beyond tax liability are refunded to the claimant; threshold and credit amounts are subject to annual inflation adjustments beginning in taxable year 2024; effective for taxable years beginning after December 31, 2023.