Business Incentive Programs & Tax Credits
In exchange for locating or expanding in the enterprise zone, eligible (generally non-retail) businesses receive a total exemption from the property taxes usually assessed on new investments. The standard program grants a property tax abatement for three years, but it can be extended to five years.
Long-Term Rural Enterprise Zone
The long-term zone program offers a property tax abatement of 7-15 years, compared to the standard enterprise zone that offers 3-5 years. Any type of business activity is eligible, but these incentives depend on local approval and minimum levels for investment size, job creation, and employee compensation.
Oregon Business Expansion Program
The Oregon Business Expansion Program is an incentive program available to existing companies expanding operations in Oregon or new businesses coming into the state. The program is a cash-based incentive (forgivable loan) equivalent to the estimated increased income tax revenue from the new hiring.
Oregon Investment Advantage
This program helps businesses start or locate in Oregon by providing a multi-year, income tax deduction on new business operations. This potentially eliminates state business tax liability during an 8-9 year period after operations begin.
Work Opportunity Tax Credit (WOTC)
The WOTC is a federal tax credit designed as an incentive for businesses to hire individuals that consistently face significant barriers to employment. Participating employers are compensated through a reduced federal income tax liability.
Small Manufacturing Business Expansion Program
As part of Oregon’s effort to support the growth of existing businesses, this program provides funding assistance in the form of forgivable loans related to expansion projects for small manufacturing businesses.
Strategic Investment Program (SIP)
The Strategic Investment Program exempts a portion of very large capital investments from property taxes for 15 years. The program is available statewide.
Solar Development Incentive
The 2016 Legislature created the Solar Development Incentive (SDI) to encourage the development of solar energy projects in Oregon by providing a cash incentive per kilowatt-hour (kWh) of electricity generated to owners of photovoltaic (PV) energy systems with a nameplate capacity of between 2 and 10 megawatts-alternating current output capacity (MWac). Qualified projects enrolled in the program can receive a monthly payment of $0.005 per kWh of electricity generated, for a period of five years.