Oregon offers globally competitive incentives to encourage business expansion.
Property Tax Abatement
Enterprise ZonesIn 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 ProgramThe Strategic Investment Program exempts a portion of very large capital investments from property taxes for 15 years. The program is available statewide.
Construction-in-ProcessUnfinished facility improvements may be exempt from local property taxes for up to two years while under construction, with appropriate 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 after it is newly placed in service, qualified M&E is exempt if certified by the Oregon Department of Agriculture. Eligible M&E may be real or personal property that is used in the primary processing for human consumption of raw or fresh fruits, vegetables, nuts, legumes, grains, dairy, eggs, seafood, and with certain limitations, bakery products. In the first of the five years, the food processor also needs to file with the county assessor or Oregon Department of Revenue using an exemption claim form.
State Income Tax Credits
Electronic CommerceInvestment tax credit equals 25% of the cost incurred by an authorized business for capital assets used in electronic-commerce operations inside one of several enterprise zones.
Qualified Research Activities CreditsCorporate credit for qualified research and basic research conducted each year in Oregon, as a state-level extension to the federal program.
Other tax credits and information at Oregon Department of Revenue
Oregon Investment AdvantageThis 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 the operations for several years after they begin.
Oregon Business Expansion ProgramThis is a cash-based forgivable loan equivalent to the estimated increase in personal income tax revenue from new hiring.
Small Manufacturing Business Expansion ProgramThis is a cash-based forgivable loan for small manufacturing businesses' expansion projects.
Work Opportunity Tax CreditCongress provides this incentive to private-sector companies for hiring individuals from target groups, for which the state of Oregon has recently instituted systems to expedite and facilitate documentation.
Film & Video IncentivesOregon 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 renewable energy and related policies