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 stipulates that a written spending plan must be created and approved by the municipality, which includes details on the use of transferred increments and any interest earned on them.

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 also requires that all transferred increments must be spent, loaned, invested, or otherwise irrevocably committed by the new expiration date. The bill emphasizes the need for public hearings and proper documentation to ensure transparency and compliance with the new regulations.

Statutes affected:
Introduction: 469.176