Oregon Business Expansion Program
This program is a discretionary cash incentive based on the estimated increase in new personal income tax revenue resulting from the new hires from the expansion or relocation project. The program is capitalized with Lottery Funds (up to $4M for 2011-13 biennium). Awards are based on 2 years (at full operation) of estimated new personal income tax revenue to the state, which are generally equal to approximately 5% of the 2 year payroll for associated with the new hires. The State is currently focused on awarding this cash incentive to businesses in the following industries: technology, athletic and outdoor, advanced manufacturing, and research and commercialization.
Enterprise Zone Property Tax Abatement
This program offers immediate cash savings via property tax abatement on new investments within zones. Manufacturing,
processing, storage, distribution, call centers and corporate headquarters are all eligible.
New buildings, additions and equipment installed at the facility receive a 100 percent property tax abatement if employment rises by the greater of 1 job or 10 percent. This locally-approved exemption is for a minimum of 3 years after property is constructed or installed.
If new, full–time employee compensation in the zone is at least 150 percent of the county average wage per year on average, the exemption can be extended for up to 2 consecutive years by local agreement, for 5 years total abatement.
Strategic Investment Program (SIP)
This program provides a 15-year property tax exemption for investment in excess of $25 million in rural areas or $100 million in urban areas. The company pays a community service fee equal to 25 percent of the abated taxes, up to a yearly maximum of $500,000 (rural area) or $2,000,000 (urban area). The exemption is available subject to project-specific agreement or in pre-established local requirements/approval in a designated Strategic Investment Zone.
E-Commerce Enterprise Zones
Up to 10 enterprise zones provide enhanced benefits for electronic commerce operations. The program also allows personal property equipment and machinery used for e-commerce to more readily qualify for the standard enterprise zone exemption.
Qualifying businesses in E-Commerce Enterprise Zones receive a tax credit against the firm’s annual state income or corporate excise tax liability, up to $2 million per year. The credit equals 25 percent of each year’s capitalized investment in assets used in the zone for electronic commerce operations.
Long Term Rural Enterprise Zone Incentives
This program provides full relief from all local property taxes on new property at the facility in almost all rural enterprise zones with local approval. The property tax exemption on the facility lasts from the start of construction until 7 to 15 years after operations begin. Minimum capital investment levels and new, full-time employment minimums must be reached and maintained within three to five years of commencing operations. Annual employee compensation at the facility needs to stay at or above 150 percent of county average wage, as achieved by the fifth year of operations.
In addition, the Governor may approve corporate income/ excise tax credits equal to 62.5 percent of gross payroll to be claimed over 5–15 years against state corporate tax liabilities relating to the facility, over and above a minimum annual tax payment equal up to $1 million. Unused credits are deferrable for up to five additional years.
Oregon Investment Advantage