Two-year income tax holiday established for certain teachers.

HF 377 establishes a two-year income tax exemption for eligible teachers in Minnesota, effective for tax years 2025-2026. To qualify, teachers must have worked at least 1,000 hours in Minnesota as defined by state law during the tax year and earned under $95,000 (or $190,000 for joint filers). The bill exempts qualifying teachers from Minnesota's individual income tax for those years, meaning they would pay no state income tax on their earnings. This directly affects teachers meeting the work-hour and income thresholds, with no tax liability for the specified period.