Oregon Tax Incentives
Incentives
For years, Oregon has ranked among the lowest cost states for businesses according to several
independent research organizations including:
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The Tax Foundation
American Institute for Economic Research
Ernst & Young
Forbes
Despite this recognition, which typically does not factor the value of cost savings from economic
development incentive programs, Oregon has more tools to encourage job growth and investment than
any state in on the West Coast or that borders it.
For employers that qualify, Oregon can offer through incentives, both in the short and long term, a
virtually tax-free operating environment. Often overlooked, Oregon’s “single sales factor” for
determining state corporate income taxes favors employers that sell their products outside the state.
It’s a contributing reason that Intel has its largest operation in world in Oregon and that multi-national
companies like Nike, Columbia Sportswear and Precision Castparts Corp.
The table below outlines some, not all, of the tools at our disposal to help Central Oregon a new home
for your company:
CENTRAL OREGON INCENTIVE SUMMARY
Incentive
What it does
Qualifying Criteria
Approval Process
Cities, Counties
Available
Standard
Enterprise Zone
Exempts 100% of real
Must invest at least $50,000 or $1,000 for
property and equipment equipment used directly in production of goods,
Approval provided by local zone
used in the production of services. Companies new to zone must create
managers and county assessor
tangible, intangible goods
at least one job, existing employers must
for three years
increase employment by 10% and sustain.
Extended
Enterprise Zone
Same as Standard Enterprise Zone, but the
Exempts 100% of real
Discretionary. Approval
average total compensation of all new jobs must
All cities, most
property and equipment
provided by the zone sponsors
be at least 150% of the average wage for all jobs
industrial
used in the production of
(cities, counties), zone manager
in the county. Total compensation can include
property within
tangible, intangible goods
and assessor. Approximate 20all non-mandatory benefits (health ins.
all three counties
for five (5) years
40 day process.
premiums, retirement, vacation pay, etc.)
Long Term
Enterprise Zone
Exempts 100% of property Must invest minimum ($9.05m) – Crook Co.,
Discretionary. Approval is
tax on real and personal $12.5m – Deschutes Co., $9.4m Jefferson Co.) in
provided local by agreement
property for up to 15 years capital investments (plant, equipment, personal
with the company enterprise
property) and create at least 50 FT jobs in
zone sponsors: Approx. 30-60
Provides up to 15 years of Deschutes and 35 FT jobs in Crook and Jefferson
day process. Income tax credits
Oregon corporate income with average total compensation of at least
approved by Governor
tax credits
150% of average wage within the county.
Economic Development for Central Oregon · 705 SW Bonnet Way, Ste. #1000. Bend OR. 97702
541.388.3236 · www.edcoinfo.com
All cities, most
rural industrial
property within
all three counties
All cities except
Bend and most
rural industrial
property within
all three counties
Oregon Tax Incentives
Provides the same 100%
Rural Renewable property tax exemptions
Energy
of enterprise zones for
renewable energy
Development Zone
development (generation)
(RREDZ)
projects.
Oregon State
Energy Loan
Program (SELP)
Companies must qualify for the standard
enterprise zone in order to be eligible for
property tax exemptions as well as have an
eligible renewable energy project (i.e. wind,
solar, biomass, etc)
The program offers competitive fixed interest
rate loans for projects that: Save energy,
Promotes energy
produce energy from renewable resources such
conservation and
as water, wind, geothermal, solar, biomass,
renewable energy resource
waste materials or waste heat, use recycled
development.
materials to create products, use alternative
fuels.
Oregon
Exempts Oregon income
Must create at least 5 new jobs with average
taxes for 8 years following total compensation of at least 150% of average
Investment
wage of all jobs within the county
Advantage (OIA) 24 months of operation
All
unincorporated
Approval provided by local zone areas within
managers and county assessor.
Crook and
Jefferson
counties
Approval by Oregon D.O.E.
Energy Loan Officers
Projects must
primarily be in
Oregon
Approval by staff at Business
Oregon. Approximate 30 day
approval.
All cities except
Bend within tricounty area
Must have job creation component. Merits of
Preliminary approval by the
each project (community, industry, company, Business Oregon Development
Immediate
type of jobs) determine award. Awards can only Dept., final approval by Oregon All areas within
Opportunity Fund
be made to public entities (i.e. city, county, etc.), Transportation Commission.
the region
(IOF)
and must pay for public road development or Approximate 45-90 day approval
improvement.
process.
Approved by local workforce
Cash reimbursement for
On-the-Job
development agency Central
on-the-job training for Complete training in at least six months at wage
All areas within
Oregon Intergovernmental
Training (OJT)
specific employer-needed
of at least $10/hr., retain employee
the region
Council (COIC). Approximate 20
Grant
skills
day approval process.
Reduces the cost of
needed transportation
infrastructure for jobcreation projects
Deschutes County
Economic
Development Fund
Incentive Rate
Industrial Land
Oregon Trade
Promotion
Program (STEP)
Energy Trust of
Oregon
Oregon
Manufacturing
Extension
Partnership
(OMEP)
Strategic
Investment
Program
Cash incentive for job
creation
Create at least 5 new, well-paying jobs in
Deschutes County
Approved by Deschutes County All areas within
Commissioners. Average
Deschutes
approval process: 30-45 days
County
Criteria vary by community, but typically new
Madras,
Below-market industrial job creation and capital investment are major
Approved by local elected
Prineville, La
land for qualifying projects considerations. Job density per acre can also be
leaders (city or county)
Pine, Redmond
a criterion.
Reimbursement of up the Employ fewer than 500 people, 75% of which
lesser of $5,000 or 50% of must be in Oregon; exhibit Oregon services or Approved by Business Oregon All areas within
international trade show goods at an international trade show or Oregon
administration.
the region
costs
trade mission.
New or existing businesses are eligible. Program
All areas within
areas include: energy efficient equipment &
Approved by the Energy Trust. the region served
Cash incentives for energy
lighting, custom capital/O&M investments,
Depending on complexity,
by either Pacific
efficiency
strategic energy management, renewable
applications can be approved in
Power or
energy production. Programs apply for new
a matter of days or weeks.
Cascade Natural
construction or renovation/retrofit.
Gas
Subsidized training and
Programs include: Business Innovation
consulting services to help Workshop (BIW), Small Business Initiative (SBI).
Approved by OMEP. Review and
small to medium size
Both offer consulting services at 25% of value
All areas within
approval process after complete
companies with
(75% discount) for financial, continuous
the region
application: 14 days.
production efficiency and improvement, and marketing. Subsidy limit for
continuous improvement
BIW: $7,500, SBI: $24,000
Exempts from property
taxes a major portion of
large capital investment
(more than $25 or $100
Economic Development for Central Oregon · 705 SW Bonnet Way, Ste. #1000. Bend OR. 97702
541.388.3236 · www.edcoinfo.com
Oregon Tax Incentives
million) in certain areas of
Central Oregon.
The facility: Is either new or an addition to an
existing structure; Has been exempt from
taxation for no more than the current tax year;
Commercial and non-utility
Is in the process of construction on January 1; Is
facilities can be exempt
Construction-in- from property taxes while not in use or occupancy on January 1; Has not File application with the county
been in use or occupancy at any time prior to
under construction and
assessor or the Oregon
progress Tax
such January 1 date; Is constructed to produce
not in use on January 1 of
Department of Revenue.
abatement
income; Is to be first used or occupied for not
the assessment year, for
less than one year from the time construction
up to two years.
begins for nonmanufacturing facilities; and
Construction is not considered begun until any
demolition is completed.
The filing process for claiming
exemption will require filing the
New machinery and
Property tax exemption for certain types of
completed exemption claim
equipment may be exempt
property acquired and installed by Oregon food with the county assessor or the
from property taxes for
Food Processor
processors (ORS 307.455). Prior to filing a claim
Department of Revenue,
five years anywhere in
for exemption, the taxpayer must contact
whichever appraises the
Property Tax
Oregon, if used in primary
Oregon Department of Agriculture and request a property. Such claims will be
Exemption
food processing of raw or
site visit to examine and determine if the
due on or before March 1, 2014,
fresh fruits, vegetables,
equipment qualifies for exemption.
or by December 31, 2014 if
legumes, nuts or seafood.
accompanied by the late filing
fee.
Economic Development for Central Oregon · 705 SW Bonnet Way, Ste. #1000. Bend OR. 97702
541.388.3236 · www.edcoinfo.com
All areas in
Oregon
All areas in
Oregon