HF2304 creates a new refundable individual income tax credit for certain Minnesota K-12 teachers. The bill defines eligible teachers as licensed kindergarten through grade 12 teachers who work at least 0.6 full-time equivalent and meet minimum student-contact-day requirements: at least 150 days for a full-year teacher or at least 75 but fewer than 150 days for a part-year teacher. To qualify, a teacher must hold a valid Tier 1, Tier 2, Tier 3, or Tier 4 license issued by the Professional Educator Licensing and Standards Board.
The credit amount depends on the teacher’s qualifying wages. Eligible full-year teachers with qualifying wages below $60,000 would receive a $15,000 credit, while eligible part-year teachers below $30,000 would receive a $7,500 credit. Teachers whose qualifying wages exceed those thresholds would receive a $2,000 credit. Married couples may each claim the credit if both spouses qualify, and the credit is refundable, meaning any amount above tax liability is paid out as a refund. The bill also requires employers to provide annual wage and service-day statements to teachers and the Department of Revenue, directs annual inflation adjustments to the thresholds and credit amounts, and allows the commissioner to establish an advance-payment option.
The bill’s main impact would be to add a new refundable credit to Minnesota Statutes chapter 290 and create a corresponding state revenue cost through the general fund, since refunds are expressly appropriated. It would also impose new reporting duties on employers of eligible teachers and administrative responsibilities on the Department of Revenue, including inflation indexing and possible advance-payment administration. The effective date is for taxable years beginning after December 31, 2024.
The available context shows little recorded debate or voting history, so there is no documented committee sentiment in the materials provided. Based on the bill’s structure, it appears designed to provide direct tax relief and financial support to teachers, especially those with lower qualifying wages, which suggests a generally supportive policy intent. However, because the bill creates a sizable refundable credit and new administrative requirements, likely points of scrutiny would include fiscal cost, eligibility design, and whether the wage thresholds and contact-day rules are the best way to target relief.
HF2304 would add a new section to Minnesota Statutes, chapter 290, establishing a refundable teacher income tax credit and related employer reporting and administrative rules. It would affect licensed K-12 teachers meeting service and wage criteria, require employers to certify qualifying wages and contact days, authorize inflation adjustments and advance payments, and appropriate general fund money to cover refunds.
No committee transcript or vote record is provided, so there is no direct evidence of support or opposition in the available materials. The bill’s purpose suggests a favorable policy posture toward teacher compensation and retention, but the absence of recorded discussion means sentiment cannot be measured from the supplied history.
The bill’s likely points of contention are fiscal and administrative. Critics could question the cost of a refundable credit funded from the general fund, the large credit amounts relative to wages, and the complexity of verifying eligibility through student-contact-day and wage reporting. Supporters would likely emphasize targeted tax relief for K-12 teachers, especially those with lower incomes, and the option for advance payments as a way to provide timely assistance.