Oregon Business Expansion Program

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 hire 50 or more full-time (equivalent) employees in Oregon and already has at least 150 employees
• Annual pay for each of at least the 50 new employees will equal or exceed:
  • 150% of the state or county average wage, whichever is less, or
  • 130% of the state or county average wage, whichever is less, if hired to work in a county outside any federally-designated metropolitan statistical area (MSA)
• Retailers are specifically excluded and the company must otherwise sell goods or services into markets involving national or international competition—'traded sector'—which can include corporate headquarters as well as manufacturing

Program Administration

• Business submits information to Business Oregon, which awards funds pursuant to a binding agreement
• Business must declare that availability of program funds is an integral factor in its decision to hire at least the 50 new employees at the above pay scale
• Agreement contains detailed performance measures, including that:
  • Company repays funds proportional with its failing to meet and maintain employment and compensation targets over at least two years
  • Hiring results in additional payroll in Oregon that is not, for example, offset by layoffs elsewhere
  • Company commits to consult with Oregon vendors before contracting to purchase goods or services

Program Mechanics

• Program is capitalized with state Lottery Funds
• Award is based on two years (at full operation) of estimated incremental personal income taxes that the state would collect from new employees at the above pay scale