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Oregon’s Incentives

Oregon offers globally competitive incentives to encourage business expansion.

Property Tax Abatement

Enterprise Zones—In exchange for investing and hiring in an enterprise zone, businesses receive exemption from local property taxes on new plant and equipment for at least three years (but up to five years) in the standard program. In addition, many zones can offer special incentives for investments in qualifying rural facilities or in electronic commerce operations.

Strategic Investment Program—The Strategic Investment Program exempts a portion of very large capital investments from property taxes for 15 years. The program is available statewide.

Construction-in-Process—Unfinished facility improvements may be exempt from local property taxes for up to two years while under construction with April 1 filing each year. In an enterprise zone, most authorized businesses enjoy a somewhat broader tax abatement using a different form.

Food Processing Machinery and Equipment (M&E)—For five years starting in or before 2020, newly operational M&E is exempt if certified by the Oregon Department of Agriculture, encompassing real or personal property used in the primary processing of many types of goods for human consumption with certain limitations. The processor also needs to file annually with the county assessor or Oregon Department of Revenue using an exemption claim form.

State Income Tax

Electronic Commerce—Investment tax credit equaling 25% of the cost incurred by the end of the authorized business's 2017 income tax year for capital assets used in electronic-commerce operations inside one of several enterprise zones.

Oregon Investment Advantage—This program helps businesses start or locate new types of operations in a number of Oregon counties by providing an income tax subtraction, potentially eliminating state income tax liability on new operations over several years after they begin.

Other tax credits and information at Oregon Department of Revenue

Other

Oregon Business Expansion Program—This is a cash-based forgivable loan equivalent to the estimated increase in personal income tax revenue from new hiring.

Small Manufacturing Business Expansion Program—This is a cash-based forgivable loan for small manufacturing businesses' expansion projects.

Solar Development Incentive Program—A program created by the 2016 Legislature that provides incentives to owners of photovoltaic energy systems that collect solar energy and distribute electricity.

Work Opportunity Tax Credit—Congress provides this incentive to private-sector companies for hiring individuals from target groups, for which the state of Oregon has instituted systems to expedite and facilitate documentation.

Film & Video Incentives—Oregon offers programs to induce film and video productions:

  • Rebate on 20% of the production's Oregon-based goods and services
  • Additional cash payment of up to 16.2% of wages paid to production personnel

Unlike other states' programs, these incentives are cash-based as opposed to tax credits. This simplifies and speeds up the process.

Learn more about Oregon's other renewable energy and related policies