Oregon's enterprise zones offer a unique resource to Oregon communities, and an excellent opportunity for businesses growing or locating in Oregon. Primarily, enterprise zones exempt businesses from local property taxes on new investments for a specified amount of time, which varies among the different zone programs.
Sponsored by city, port, county or tribal governments, an enterprise zone typically serves as a focal point for local development efforts. There are currently 69 enterprise zones creating better opportunities for business investment across Oregon: 54 rural and 15 urban. Local governments are responsible for creating ,amending, managing and renewing most of these zones, until June 30, 2025. Learn more >>
In exchange for locating or expanding into any enterprise zone, eligible (generally non-retail) businesses receive total exemption from the property taxes normally assessed on new plant and equipment. Subject to local authorization, timely filings and criteria the benefits include:
- Construction-in-Process Enterprise Zone ExemptionFor up to two years before qualified property is placed in service, it can be exempt from local taxes, which can cover more property than the regular exemption for commercial facilities under construction.
- Three to five consecutive years of full relief from property taxes on qualified property, after it is in service.
- Depending on the zone, local incentives also may be available.
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In addition, some enterprise zones offer special business tax incentives.
- Long-term Rural Enterprise Zone Facilities
Available in most rural designations, the long-term program extends property tax abatement to as many as 15 years on new facility improvements and installations. Any type of business activity is eligible, but these incentives depend on local approval and varying levels of minimum investment, job creation and employee compensation at the facility, depending on location.
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- Electronic Commerce Zones
Several enterprise zones have received special status to further encourage electronic commerce, or "e-commerce," investments. Learn more >>
- Tribal Zones
Federally-recognized Tribes in Oregon may have any of the Tribe's land designated as a "reservation enterprise zone." The Tribal government is the zone "sponsor." A Tribe also may create a special "partnership" zone through an agreement with a local government. Both designation types include a state income tax credit for any type of business to offset the Tribal taxes that it might pay. Learn more >>