This legislative bill proposes tax credits in Minnesota to support the aerospace and aviation industry by providing financial incentives to recent graduates and employers in this sector.

Key points of the bill include: 1. Definitions: The bill outlines specific definitions for terms such as "aerospace," "aviation," "compensation," and what constitutes a "qualified employer" or "qualified employee" within these industries.

1. Tax Credit for Graduates: Aerospace and aviation graduates who are employed full-time can get a tax credit of $5,000 each year for up to five years. This credit hinges on them starting work on or after January 1, 2026, and earning a relevant degree or certificate close to their employment start date.

2. Tax Credit for Employers: Employers in the aviation and aerospace sectors can claim several credits:

   • Tuition Reimbursement: Employers receive a credit for 50% of the tuition they reimburse to qualified employees, up to a capped amount.
   • Compensation: A credit of 10% of compensation paid to qualified employees, with a maximum credit of $15,000 per employee per year for the first five years of employment.

3. Pass Through of Credits: For entities like partnerships or S corporations, tax credits can be passed through to the individual partners, members, or shareholders.

4. Reporting and Evaluation: Starting January 15, 2028, an annual report evaluating the tax credit program’s cost and effectiveness will be required.

5. Expiration: This tax credit program is set to expire at the end of 2034, with no new credits allocated after December 31, 2030.

Overall, this bill aims to enhance the growth and development of the aerospace and aviation industries in Minnesota by making these fields more attractive to both potential employees and employers through financial incentives.