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 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 any transfer must be reported to the Office of the State Auditor, and outlines that improperly handled increments are not eligible for transfer. The effective date of this section is the day following its final enactment.

Statutes affected:
Introduction: 469.176