Bill > HF2006

This bill modifies Minnesota's tax increment financing (TIF) law to provide more flexibility for local authorities in using unobligated tax increment funds. Specifically, the bill extends the deadline for transferring and using unobligated increment from December 31, 2022, to December 31, 2025, and pushes back the final spending deadline to December 31, 2027. The bill allows local authorities to transfer unobligated increment to support private development projects that will create or retain jobs, including construction jobs, and permits authorities to make equity investments to make such developments financially feasible. The bill also requires authorities to create a written spending plan approved by the municipality after a public hearing, and allows municipalities to amend these plans to extend the date of increment use and authorize the use of interest earned on transferred increment. Authorities must provide a copy of the approved spending plan to the State Auditor, and any increment not spent, loaned, invested, or irrevocably committed by the deadline must be returned to the district or distributed as excess increment if the district has been decertified. The bill becomes effective immediately upon final enactment.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2006&ssn=0&y=2025