Incentives & Capital

Incentives

Oregon consistently ranks among the lowest cost states for business according to independent research organizations such as Forbes, Ernst & Young, The Tax Foundation, and the American Institute for Economic Research. In addition to this distinction the state also has more tools and incentives encouraging job growth and investment than any of its Western neighbors, including Washington, California, Idaho, and Nevada.

Through incentives, Oregon offers (to employers that qualify) a virtually tax-free operating environment – both in the short and long term. Often overlooked is, Oregon’s “Single Sales Factor” for determining state corporate income taxes which favors employers that sell their products outside the state. In fact, it’s a significant reason Intel has its largest operation in the world here and why multinational companies like Nike, Columbia Sportswear, and Precision Castparts Corporation have their headquarters in Oregon.

The table below summarizes some of the tools that help make Central Oregon the right choice for business, including state and local incentives, enterprise zones, and more. For more details on these tools, Download the PDF.

Strategic Investment Program (SIP)exempts from property taxes a major portion of large capital investment (more than $25 or $100 million) in certain areas of Central Oregon.

CENTRAL OREGON TAX INCENTIVE TABLE

Incentive What it does
Standard Enterprise Zone Exempts 100% of real property and equipment used in the production of tangible, intangible goods for three years.
Extended Enterprise Zone Exempts 100% of real property and equipment used in the production of tangible, intangible goods for five (5) years.
Long Term Enterprise Zone (LTEZ) Exempts 100% of property tax on real and personal property for up to 15 yearsProvides up to 15 years of Oregon corporate income tax credits.
Rural Renewable Energy Development Zone (RREDZ) Provides the same 100% property tax exemptions of enterprise zones for renewable energy development (generation) projects.
Oregon Investment Advantage (OIA) Exempts Oregon income taxes for 8 years following 24 months of operation.
Immediate Opportunity Fund (IOF) Reduces the cost of needed transportation infrastructure for job-creation projects.
On-the-Job Training (OJT) Grant Cash reimbursement for on-the-job training for specific employer-needed skills.
Deschutes County Forgivable Loan Fund Cash incentive for job creation.
Incentive Rate Industrial Land Below-market industrial land for qualifying projects.
Oregon Trade Promotion Program (STEP) Reimbursement of up the lesser of $5,000 or 50% of international trade show costs.
Oregon Energy Trust Rebates and tax credits for energy efficiency projects.
Oregon Manufacturing Extension Partnership  (OMEP) Subsidized training and consulting services to help small to medium size companies with production efficiency and continuous improvement.
Strategic Investment Program (SIP) Exempts from property taxes a major portion of large capital investment (more than $25 or $100 million) in certain areas of Central Oregon.
Construction-in-progress Tax Abatement Commercial and non-utility facilities can be exempt from property taxes while under construction and not in use on January 1 of the assessment year, for up to two years.
Food Processor Property Tax Exemption New machinery and equipment may be exempt from property taxes for five years anywhere in Oregon, if used in primary food processing of raw or fresh fruits, vegetables, legumes, nuts or seafood.

Standard and Extended Enterprise Zone Brochures

The program offers 3 to 5 year, 100% property tax exemptions for new capital investments (buildings and certain equipment) for qualified companies who meeting minimum job creation and wage levels. Certain zones also offer other benefits including permit and SDC discounts, reduced sewer and water charges, and other local incentives. Click the links below for a brochure with specifics on enterprise zones for each Central Oregon community:

Business Capital & Financing Resources

Incentives-and-taxes_2Determining how to finance your business is one of the most critical decisions you face as a company. We often assist companies as they look to secure capital and financing.

Click here for a comprehensive list of debt capital resources, state/federal loan and guarantee programs, and local, regional, and special private programs. In addition, this list includes equity capital resources from concept/seed through launch and growth stages of business.

Looking for our Business and Mentoring Resources List?

Be sure to visit our Business and Economic Data page in the Info Hub for more information and resources.