Bill > SF2337

This bill clarifies and expands the temporary use of unobligated tax increment financing (TIF) for economic development purposes. Specifically, it allows local authorities to transfer unobligated tax increment funds to support private development projects that create or retain jobs, with construction needing to commence before December 31, 2025. The bill extends the previous expiration date from December 31, 2022, to December 31, 2027, and allows municipalities to transfer and use these funds after creating a written spending plan approved through a public hearing process. The bill also provides more flexibility by allowing municipalities to amend spending plans, use interest earned on transferred increments, and make investments or loans to support project feasibility. Additionally, the bill requires that transferred increments must be spent, loaned, invested, or irrevocably committed by December 31, 2027, with any unused funds being returned to the district or distributed as excess increment if the district has been decertified. The legislation aims to provide local governments with more tools to support economic development and job creation by using unobligated tax increment funds.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2337&ssn=0&y=2025