OREGON INCENTIVES SUMMARY
Oregon Business Expansion Program (BEP)
This incentive program is available to existing companies expanding operations in Oregon or new companies coming into the state. The BEP is a cash incentive (forgivable loan) equal to the estimated increase in income tax revenue from new jobs created as a result of the project. Eligible companies must have at least 150 existing employees and commit to create at least 50 or more full-time jobs. Annual pay for the 50 new employees should be 150% or higher than the state or county average wage, whichever is less, or 130 percent of the state or county average wage, whichever is less, in areas outside federally-designated metropolitan statistical areas. The incentive is based on two years ( at full operation) of the estimated incremental personal income taxes of the new employees.
Oregon Investment Advantage
Companies locating in an eligible county may be certified up to ten consecutive times to annually deduct or subtract taxable income related to operations, potentially eliminating state income tax liability for that ten year period, which may begin at least 24 months after the commencement of new operations. Companies must create at least five new full-time jobs that meet a minimum salary level. Also, facility operations must be the first of their kind anywhere in Oregon for a company, and the company should not compete with local existing businesses.
Strategic Investment Program
The Strategic Investment Program exempts very large capital investments, above certain thresholds, from property taxes for up to 15 years. The program is available statewide and targets industries that sell their goods or services on a national or international platform. Project thresholds must exceed $100 million in metropolitan areas (population of 40,000 or greater), and $25 million in rural areas if the total investment is $500 million or less, and $50 million is the capital investment is between $500 million and $1 billion. A community service fee equal to 25 percent of the annual tax savings is paid annually to local public service providers. The annual fee has a cap of $2.5 million.
Notice: This list of economic development incentive programs is intended to provide a high-level overview of commonly pursued state discretionary programs. A comprehensive analysis of project details will determine the full scope of state and local incentive programs that may be available to support a specific project.