Regional Incentives

Enterprise Zones

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 73 enterprise zones creating better opportunities for business investment across Oregon: 56 rural and 17 urban. Local governments are responsible for creating, amending, managing, and renewing most of these zones, until June 30, 2025.
Learn more about zone sponsorship >>

Standard Program

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 Exemption—For 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.

Learn more about eligibility >>

Special Programs

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. Learn more about Long-term Rural >>

Electronic Commerce Zones
Several enterprise zones have received special status to further encourage electronic commerce, or "e-commerce," investments. Learn more about Electronic Commerce >>

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 about Tribal Zones >>


Oregon Economic Development

Category: OR State Incentives

More OR State Incentives

Opportunity Zones In 2018, the U.S. Treasury made opportunity zone designations across the country to encourage long-term investments through a federal tax incentive. Governor Brown's nomination resulted in 86 qualified opportunity zones in Oregon. What Are Opportunity Zones? Opportunity Zones can deliver significant tax savings on medium- t... Learn More
Congress provides this incentive to private-sector companies for hiring individuals from target groups, for which the state of Oregon has instituted systems to expedite and facilitate documentation. Learn More
Our media incentive programs can rebate 20% of your Oregon-based goods and services, and an additional cash payment of up to 16.2% of payroll wages paid to production personnel working in the state. More often than not, the turnaround of cash rebate payments is quic... Learn More
Food processors exemption The Oregon Legislature reinstated the property tax exemption in 2013 for certain types of property acquired and installed by Oregon food processors (ORS 307.453) by the passage of House Bill 2735. The program allows food processors to request a property tax exemption for qualified property machiner... Learn More
If you file a consolidated Oregon return and have more than one affiliate doing business in Oregon or with Oregon-source income, you must complete Schedule OR-AF and submit it with your return. Learn More
NEOEDD/NOBD has helped dozens of businesses in Baker, Union, and Wallowa counties launch or expand their businesses with its loan programs. The loans are “gap” loans, meant to fill gaps left by traditional lenders. Anyone looking for loan funds should consider the 5 “Cs” of Lending... Learn More
This incentive program is available to existing companies expanding operations in Oregon or new companies coming into the state. The Oregon Business Expansion Program (BEP) is a cash-based incentive (forgivable loan) equivalent to the estimated increase in income tax revenue from the new hiring. Eligibility Company plans to hir... Learn More
With an up-to-10-year income tax holiday, this program helps businesses start or locate new operations in many Oregon counties. Companies setting up operations in an eligible county can be certified as many as 10 consecutive times to annually deduct or subtract taxable income related to those operations, potentiall... Learn More
The Oregon Low Income Community Jobs Initiative (Oregon New Markets Tax Credit, or NMTC) program: Helps finance investments and create jobs in low-income communities Delivers below-market-rate investment options to Oregon businesses Attracts additional Federal New Markets Tax Credit investments in Oregon Sparks revitalization in Oregon's low-income communities Eligible Applicants Community Developmen... Learn More
As part of the state of Oregon's effort to support the growth of existing Oregon businesses, this program provides funding assistance, in the form of forgivable loans, for small manufacturing businesses' expansion projects. This program is no longer accepting applications, as all funding has been awarded. I... Learn More
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 an... Learn More
The Strategic Investment Program (SIP) offers a 15-year property tax exemption on a portion of large capital investments. The program was created in the 1990s to induce large, capital-intensive facilities to locate and grow anywhere in Oregon. What Projects Qualify SIP projects must serve a "traded sector"... Learn More
The program exempts a portion of very large capital investments from property taxes for 15 years. The program is available statewide. Learn More
The Strategic Reserve Fund (SRF) is a discretionary tool funded by lottery dollars used for a variety of projects impacting economic development, and can be sorted into two different categories. Given the diverse projects supported, each investment will have different requirements. Projects considered for th... Learn More