MN SF23

Clarifies that tax increment financing (TIF) authorities may use unobligated increment not only for spending but also for loans and investments by December 31, 2025

Requires any unspent, unloaned, or uninvested transferred increment to be returned to the TIF district after the December 31, 2025 deadline

Specifies that returned increment includes loan proceeds, principal, interest, investment earnings, and other repayments received by the authority or municipality

If a TIF district has been decertified when increment is returned, the funds must be treated as excess increment and distributed according to existing statutory requirements

Takes effect the day following final enactment