The bill amends Minnesota Statutes 2024, section 469.176, subdivision 4n, to clarify the uses of unobligated tax increment financing. It allows authorities to transfer unobligated increments for specific purposes, such as providing financial assistance for private development projects that create or retain jobs, or making equity investments in entities necessary for the financial feasibility of such developments. The bill establishes a maximum transfer amount based on the district's unobligated increment and requires the creation of a written spending plan, which must be approved by the municipality after a public hearing.

Additionally, the bill introduces new requirements regarding the handling of transferred increments, stating that they must be spent, loaned, or invested, and outlines the conditions under which increments must be returned to the district. It specifies that any proceeds or repayments related to the transferred increments must also be returned by December 31, 2025. The authority to transfer increments under this subdivision is set to expire on December 31, 2022, and the new provisions will take effect the day following final enactment.

Statutes affected:
Introduction: 469.176