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 maximum transfer amount is defined as the excess of the district's unobligated increment, and authorities must create a written spending plan detailing the use of transferred increments, including interest earned on them, after holding a public hearing.

Additionally, the bill extends the authority to transfer increments from December 31, 2022, to December 31, 2027, and stipulates that all transferred increments must be spent, loaned, invested, or otherwise irrevocably committed by the new expiration date. It also requires municipalities to publish notice of public hearings regarding spending plans and mandates that a signed copy of the approved plan be submitted to the Office of the State Auditor. The effective date of this section is the day following final enactment.

Statutes affected:
Introduction: 469.176