Oregon offers globally competitive tax incentives to encourage businesses to locate in Oregon. Salem, Oregon is pro-business and offers a wide-array of incentives that are designed to stimulate economic growth and job creation.
Oregon State Tax Incentives
In exchange for locating or expanding into an enterprise zone, eligible businesses receive exemption from property taxes on new plants and equipment from three to five years in the standard Enterprise Zone program. In addition, the Electronic Commerce Zone may benefit businesses locating in zones with the special status.
Strategic Investment Program
Exempts a portion of large capital investments from property taxes. The program is available statewide for projects developed by traded-sector businesses, most often used for manufacturing firms. “Traded sector” is defined in Oregon law as “industries in which member firms sell their goods or services into markets for which national or international competition exists.” Depending on the investment size, the Strategic Investment Program can offer exceptional benefits in terms of net present value.
Entrepreneurial Development Loan Fund Provides direct loans to help start-ups, micro-enterprises and small businesses expand or become established in Oregon. This fund fills a niche not provided through traditional lending markets. Loans are a maximum amount of $50,000, a maximum term and amortization of 5 years and a fixed interest rate of Prime plus 2% APR.
A complete list of State Incentives is available on the SEDCOR website.
Financial Assistance Or Low-Cost Financing
Oregon Industrial Development Bonds
Tax-exempt bonds issued by the state of Oregon to provide long-term debt financing at a rate below prime for land, buildings and equipment. These bonds finance job creation and business growth for Oregon traded-sector, value-added manufacturers and processors.
Oregon Business Development Fund (OBDF)
A revolving loan fund that provides long-term fixed- rate financing for land, buildings, equipment, machinery and permanent working capital. Participants must create or retain jobs and must be a traded-sector business in manufacturing, processing or a regionally significant tourist facility.
Small Business Loan Programs
The Mid-Willamette Valley Council of Governments provides assistance to businesses with government finance programs. The incentives are designed to help companies expand or start new ventures by providing loan packaging and assistance services for loan programs and obtaining financing from private sector lenders. Mid-Willamette Valley Council of Governments website
On-the-Job Training Program
This is a hire-first program. The trainee is employed by the company that provides the training. This is not subsidized employment. OJT training payments to employers are compensation to the employer for the extraordinary costs associated with training participants and lower productivity of the participants during the training period.
Energy Trust of Oregon
Energy Trust of Oregon, Inc., is a nonprofit organization dedicated to changing how Oregonians use energy by promoting energy efficiency and clean renewable energy for Oregon customers of Pacific Power, Portland General Electric and NW Natural. The Energy Trust offers Oregonians cash incentives for energy-efficient improvements by new and existing businesses.