This bill amends Minnesota Statutes 2024, section 469.176, subdivision 4n, regarding tax increment financing (TIF). The key provisions include:

• Expansion of Eligible Uses: It clarifies that unobligated TIF funds may be used for private development projects that create or retain jobs in the state, including construction jobs, as long as construction begins before December 31, 2025, and would not have started otherwise.
• Investment in Development: It allows authorities to make equity or similar investments in corporations, partnerships, or limited liability companies to make qualifying development financially feasible.
• Spending Plan Requirement: Authorities must create a written spending plan detailing how the transferred increment will be used. The plan must be approved by the municipality after a public hearing with proper notice.
• Extension of Spending Deadline: The deadline for spending, loaning, investing, or irrevocably committing transferred increments is extended from December 31, 2025, to December 31, 2027.
• State Oversight: A copy of the approved spending plan must be sent to the Office of the State Auditor.
• Return of Unused Funds: Any transferred increment not used by the deadline must be returned to the district or, if the district is decertified, distributed as excess increment.

The purpose of this bill is to provide more flexibility in the use of tax increment financing for job creation and economic development while ensuring transparency and oversight.