Tax Incentives

Oregon offers globally competitive tax incentives to help encourage businesses to locate in Oregon, and existing Oregon businesses to grow and prosper.

Standard Enterprise Zones—In exchange for locating or expanding into an enterprise zone, eligible (generally non-retail) businesses receive exemption from property taxes on new plants and equipment for at least three years (but up to five years) in the standard program. In addition, two other designations, Long-term Enterprise Zone and Electronic Commerce Zone, may benefit businesses locating in zones with the special status.

The Oregon Investment Advantage—This income tax exemption program helps businesses start or locate in most Oregon counties with a 10-year waiver on all income/excise taxes related to those operations, potentially avoiding state business tax liability for that period.

Strategic Investment Program—The Strategic Investment Program exempts a portion of large capital investments from property taxes. The program is available statewide for projects developed by “traded-sector” businesses and is most often used for manufacturing firms. "Traded sector" is defined in Oregon law as "industries in which member firms sell their goods or services into markets for which national or international competition exists."

Business Energy Tax Credit—The Oregon Department of Energy offers the Business Energy Tax Credit to those who invest in energy conservation, recycling, renewable energy-related manufacturing and less-polluting transportation fuels.