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, including providing financial assistance for private development that creates or retains jobs, and making equity investments in entities necessary for such developments. The maximum transfer amount is defined as the excess of the district's unobligated increment, and authorities must create a written spending plan for the transfer, which requires municipal approval following a public hearing.

Additionally, the bill introduces new requirements regarding the handling of transferred increments. It mandates that all transferred increments must be spent, loaned, or invested, and outlines the conditions under which increments must be returned to the district, including any proceeds or interest received. The authority to transfer increments is set to expire on December 31, 2022, and the bill specifies that the new provisions will take effect the day after final enactment.

Statutes affected:
Introduction: 469.176