SF 3918

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/20/2024 08:58am

A bill for an act
relating to taxation; individual income; establishing a refundable credit for certain
teachers; proposing coding for new law in Minnesota Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.0696] TEACHER CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible full-year teacher" means an individual who is a kindergarten through grade
12 teacher with a teaching position equivalent to at least 0.6 full-time equivalent, and:
new text end

new text begin (1) holds a valid Tier 1, Tier 2, Tier 3, or Tier 4 teaching license issued by the Professional
Educator Licensing and Standards Board under section 122A.18; and
new text end

new text begin (2) completes at least 150 student contact days of teaching service each school year,
excluding days devoted to parent-teacher conferences, teachers' workshops, other staff
development opportunities, and days on which a teacher is absent from school.
new text end

new text begin (c) "Eligible part-year teacher" means an individual who is a kindergarten through grade
12 teacher with a teaching position equivalent to at least 0.6 full-time equivalent, and:
new text end

new text begin (1) holds a valid Tier 1, Tier 2, Tier 3, or Tier 4 teaching license issued by the Professional
Educator Licensing and Standards Board under section 122A.18; and
new text end

new text begin (2) completes at least 75, but fewer than 150, student contact days of teaching service
each school year, excluding days devoted to parent-teacher conferences, teachers' workshops,
other staff development opportunities, and days on which a teacher is absent from school.
new text end

new text begin (d) "Eligible teacher" means an eligible full-year teacher or eligible part-year teacher.
new text end

new text begin (e) "Threshold amount" means:
new text end

new text begin (1) $60,000 for an eligible full-year teacher; and
new text end

new text begin (2) $30,000 for an eligible part-year teacher.
new text end

new text begin (f) "Qualifying wages" means the amount of wages earned as an eligible teacher as
reported under subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An eligible full-year teacher whose qualifying wages are
less than the threshold amount under subdivision 1, paragraph (e), clause (1), is allowed a
credit equal to $15,000.
new text end

new text begin (b) An eligible part-year teacher whose qualifying wages are less than the threshold
amount under subdivision 1, paragraph (e), clause (2), is allowed a credit equal to $7,500.
new text end

new text begin (c) An eligible full-year teacher or eligible part-year teacher whose qualifying wages
exceed the threshold amount is allowed a credit equal to $2,000.
new text end

new text begin (d) In the case of a married couple, each spouse is eligible for the credit in this section.
new text end

new text begin Subd. 3. new text end

new text begin Statement of qualifying wages. new text end

new text begin By January 15 of each year, an employer of
an eligible teacher must provide a statement to each eligible teacher and submit a copy of
the statement to the commissioner. The statement must be in a form and manner prescribed
by the commissioner. The statement must include the amount of qualifying wages earned
in the previous calendar year by the eligible teacher and the number of student contact days
of teaching service in the previous calendar year by the eligible teacher.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable; appropriation. new text end

new text begin If the amount of credit that the claimant
is eligible to receive under this section exceeds the claimant's tax liability under this chapter,
the commissioner shall refund the excess to the claimant. An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the general fund.
new text end

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The commissioner of revenue must annually adjust the
threshold amount and the credit amounts in subdivision 2, paragraphs (a) to (c), for inflation,
as provided in section 270C.22. The statutory year is taxable year 2024.
new text end

new text begin Subd. 6. new text end

new text begin Advance payment of credits. new text end

new text begin (a) The commissioner may establish a process
to allow a taxpayer to elect to receive one or more advance payments of the credit under
this section. The amount of advance payments must be based on the taxpayer's and
commissioner's estimate of the amount of credit for which the taxpayer would be eligible
in the taxable year beginning in the calendar year in which the payments were made. The
commissioner must not distribute advance payments to a taxpayer who does not elect to
receive advance payments.
new text end

new text begin (b) The amount of a taxpayer's credit under this section for the taxable year is reduced
by the amount of advance payments received by the taxpayer in the calendar year during
which the taxable year began. If the total amount of the advanced payments the taxpayer
received for the taxable year exceeds the credit the taxpayer was eligible to receive for the
taxable year, the taxpayer's liability for tax is increased by the difference between the amount
of advance payments received and the credit amount.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end