If you’re a business owner in the Beaver state, there are a handful of tax programs you can take advantage of. Though Oregon doesn’t offer any business tax credits, the state does have one significant cash-based incentive and several business tax exemptions and abatements. Keep reading for a complete breakdown.
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Business tax incentives in Oregon
Business Expansion Program
The Oregon Business Expansion Program (BEP) is a cash incentive program that rewards companies for hiring new employees for an expansion or relocation project within the state. Both existing companies in Oregon and companies that want to move to Oregon are eligible.
To qualify for the program, companies have to meet these requirements:
- Have at least 150 employees and plan to hire at least 50 more full-time roles
- Pay the new employees at least 150% of the state or county average wage, whichever is less
- Be in a traded sector as defined by Oregon (retailers aren’t eligible)
Learn more about the BEP here.
Plus, get actionable tips on growing your business—no matter what stage you’re in.
Business tax exemptions in Oregon
Oregon Investment Advantage
The Oregon Investment Advantage (OIE) lets businesses in specific locations take a corporate income tax exemption for up to 10 years. Businesses of any size and in any industry are eligible for the advantage as long as they set up new business operations in one of these Oregon counties:
- Baker
- Coos
- Crook
- Curry
- Douglas
- Grant
- Harney
- Jefferson
- Josephine
- Klamath
- Lake
- Linn
- Umatilla
- Union
To get initially certified for OIE, businesses must not have recently operated a similar facility elsewhere in Oregon, and their new operations must not compete with existing businesses in the area where they’re going.
To get re-certified each year, businesses then have to do the following:
- Hire five or more new full-time employees year-round
- Pay the new employees an average wage that equals or exceeds the average county annual wage
- Give the new employees compensation that’s equal to or greater than 150% of the average individual’s local income (or 130% if the facility is located outside a federally designated metropolitan statistical area) or 100% if the employees receive health insurance coverage that’s equal to or better than that of the local city personnel
Get more information on the OIE program and how to apply here.
Related: Check out Gusto’s state-by-state guide to minimum wage.
Standard Enterprise Zone
The Standard Enterprise Zone program gives eligible Oregon businesses a tax abatement from local property taxes if they locate to or expand within an enterprise zone. The following types of businesses are eligible: manufacturers, processors, shippers, call centers, headquarters-type facilities, and some hotels or resorts.
To qualify for the basic three-year tax abatement, businesses have to increase full-time employment by at least one new job or 10% of the total workforce.
To receive the extended tax abatement of four to five years, businesses must also pay their new employees wages equal to the current county average wage and give them compensation (including benefits) at or above 130-150% of the county average wage.
You can apply for the enterprise zone program here.
Rural Renewable Energy Development (RRED) Zone
The Rural Renewable Energy Development (RRED) Zone program gives eligible Oregon businesses in RRED zones a tax abatement from local property taxes for three to five years.
To receive the tax abatement, businesses in RRED zones must take on qualifying investment projects that meet two requirements: 1) Use wind, geothermal, solar, biomass, or other types of renewable energy to generate electricity and 2) Produce, distribute, or store biofuels.
See the full list of RRED zones here.
Strategic Investment Program
Oregon’s Strategic Investment Program (SIP) gives “traded sector” businesses in Oregon a 15-year property tax exemption on a portion of their large capital investments. To qualify for the program, traded sector businesses must invest at least $150 million into qualified projects or $40 million if they’re located in a rural area.
Get more information on the SIP here.
City and county tax credits in Oregon
Some cities in Oregon have their own business incentive programs and business tax credits. Portland, for example, has a Downtown Business Incentive credit program available to local businesses that meet certain lease and employment requirements.
Browse your city’s website to find out what your local programs entail.
Business financing resources in Oregon
If you need a cash infusion to improve your business, state resources can help. Oregon has a variety of business loans, credit enhancement programs, and grants available to businesses of every size and type. Check out Gusto’s guide to business grants and loans in the Beaver state.
And bookmark these blog posts for practical advice on running a business in Oregon:
