The bill amends Minnesota Statutes 2024, section 469.176, subdivision 4n, to clarify the use of unobligated tax increment financing and extends the expiration date for certain transfers. It allows authorities to transfer unobligated increments for specific purposes, such as providing financial assistance for private development that creates or retains jobs, or making equity investments necessary for the feasibility of such developments. The bill also stipulates that a written spending plan must be created and approved by the municipality, which details the use of the transferred increment, including any interest earned on it.

Additionally, the bill extends the authority to transfer increments until December 31, 2027, allowing municipalities to amend their spending plans to extend the usage period for transferred increments and to include interest earned. It mandates that all transferred increments must be spent, loaned, invested, or otherwise irrevocably committed by the new expiration date. The bill also requires authorities to provide a copy of the approved spending plan to the Office of the State Auditor. The effective date of this section is the day following its final enactment.

Statutes affected:
Introduction: 469.176