Allocation to the border city enterprise zones increased, tax reduction authority modified, and restrictions removed.

HF 2931 doubles the annual funding for Minnesota's border city enterprise zones from $750,000 to $1.5 million, specifically targeting cities on the state's western border. It expands tax incentives by adding a $5,000 annual income tax credit per new worker and a state-paid property tax credit for new or expanded commercial/industrial facilities. The bill removes prior restrictions on how these funds can be used, allowing municipalities to apply them toward tax reductions for businesses in designated zones. These changes directly affect businesses operating within border city enterprise zones by providing enhanced tax relief options to retain or attract operations.