MN HF3994

Amends Minnesota Statutes section 469.176, subdivision 2, governing how local authorities handle excess tax increment financing (TIF) revenues

Requires authorities with excess TIF increments to return the excess to the county auditor within nine months after December 31 and decertify the district (unless a qualifying pay-as-you-go contract exists)

Allows deferral of decertification if the authority modifies the TIF plan within nine months to increase authorized costs by more than the excess increment amount

Simplifies the definition of "excess increments" by removing several reductions previously allowed, including costs paid from other sources, dedicated revenues, and outstanding bond obligations

Effective for excess increment determinations for calendar year 2026 and thereafter, applying to all TIF districts