Requirements for return of excess tax increments modified.

This bill modifies how Minnesota authorities handle excess tax increments in tax increment financing districts, requiring them to return any surplus funds to the county auditor and potentially decertify the district if no qualifying debt exists. The law mandates that authorities must annually calculate excess increments by comparing total collected funds against authorized costs, with a new requirement to return these funds within nine months of year-end. Authorities may defer decertification if they approve a plan modification that increases authorized costs by more than the excess amount, but this deferral expires if no further qualifying modifications occur and no outstanding debt remains. The changes apply to all tax increment financing districts starting with excess increment determinations for calendar year 2026 and later.