Below are the most significant property tax abatement programs available in Oregon as well as programs specific to Central Oregon.
Strategic Investment Program (SIP)
This program exempts from property taxes a major portion of large capital investment (more than $25 or $100 million) anywhere in Oregon. For all investment value over $100 million in urban areas or $25 million in rural areas, a 15-year property tax exemption may be granted by local entities. The company pays a community service fee equal to 25 percent of the exemption, up to a yearly maximum of $2 million in urban areas or $500,000 in rural areas. The exemption also is available with pre-established local requirements and approval if the project will locate in a designated Strategic Investment Zone.
STANDARD AND EXTENDED ENTERPRISE ZONES
Central Oregon has four enterprise zones, which are:
• Deschutes County Rural (City of La Pine and the Bend Airport)
• Greater Redmond Area (City of Redmond and City of Sisters)
• Prineville/Crook County
• Jefferson County (Cities of Madras, Metolius and Culver)
The program offers 3 to 5 year, 100% property tax exemptions for new capital investments (buildings and certain equipment) for qualified companies. Only new capital investments are exempted for the period, after such time they come on the tax role at a depreciated rate (equipment) or an appreciated rate (land, buildings). Certain zones also offer other benefits including permit and SDC discounts, reduced sewer and water charges, and other local incentives.
SUPER Enterprise-ZONES
Also known as the Long-Term Rural Enterprise Zone, these were established in 1997 for nonurban counties with chronically low income or chronic unemployment. All property taxes on an entire qualified facility may be exempted for 7-15 years. Special criteria restrict these incentives to exceptional projects in terms of minimum investment and new employment, and also depend on the facility’s location and the county’s size, in addition to meeting requirements that are equivalent to regular enterprise zones.
| Central Oregon Enterprise Zones at a Glance |
|
| Zone and area covered |
Super E-Zone
(150% of relevant average annual wage benchmark below) |
Hotel/Resort
Elibigility
(in all or some of the zone) |
E-Commerce Special Tax Credit
|
Investment
Levels
|
Deschutes County Rural Zone
(Bend Airport, City of La Pine) |
$50,696 |
Yes
Except in unincorporated
Deschutes County |
No |
Minimum
$50,000 |
Greater Redmond Area Zone
(select areas within the City of Redmond, City of Sisters) |
$50,696 |
No |
Yes |
Minimum
$50,000 |
Jefferson County Zone
(Includes Cities of Metolius & Culver and industrial parts of the City of Madras) |
$45,822 |
Yes
Except within the
jurisdiction of Madras |
No |
Minimum
$50,000 |
| Prineville/Crook County Zone (select areas within City of Prineville and Crook County) |
$50,696 |
Yes |
No |
Minimum
$50,000 |
Sources: EDCO; Oregon Employment Department
RURAL RENEWABLE ENERGY ZONE IN CROOK COUNTY
In 2007, Oregon passed the Renewable Portfolio Standard, which requires the state’s large utilities to generate 25% of their electricity from renewable resources by 2025. Smaller utility companies must meet a standard of 5 to 10% from renewable sources by 2025. Parallel to this legislation, Oregon created Rural Renewable Energy Development (RRED) zones to encourage investment in such renewable energy projects as wind, solar, geothermal, biomass, and other alternative energy sources. The RRED Zone for Crook County encompasses the entire county.
Both current employers and those new to the region are eligible; the minimum project investment is $50,000 and total maximum exemptible investments within the zone is $250 million. Existing companies must add at least 10% to their workforce to qualify. Five year exemptions require a company to pay an average of 150% of the average wage in Crook County in total compensation. That may include non-mandatory benefits such as vacation pay, medical insurance, bonuses, overtime, profit sharing, and retirement contributions.
Enterprise Zone Brochure Downloads; contact Information
Download a PDF brochure for the following zones; brochures contain a map of eligible areas and an FAQ (Frequently Asked Questions) about the enterprise zones.
• Deschutes County Rural (City of La Pine and the Bend Airport)
• Redmond
• Prineville/Crook County
• Jefferson County (Madras, Metolius and Culver). Please note that this brochure is being revised. Culver was added to the Jefferson County Enterprise Zone in March 2009 and the map does not yet reflect that addition.)
To receive investment incentives, businesses must file an Enterprise Zone Authorization with the local zone manager prior to any eligible investments. It is strongly recommended that pre-certification occur prior to obtaining building permits. For more information about the Enterprise Zones and possible application to your situation, please contact EDCO at 541-388-3236.
Construction-in-Progress Tax abatement
For the Strategic Investment Program, enterprise zones and manufacturers in general this tax abatement has contributed to Oregon's favorable tax climate for nearly 50 years. The program allows commercial, non-utility facilities to be exempt from property taxes while under construction and not in use on January 1 of the assessment year, for up to two years. This tax exemption is generally valid for any manufacturing project, including any machinery or equipment located in the unoccupied facility on January 1. The exemption also applies to all property being constructed or installed as part of any authorized enterprise zone project.
Food processor Exemption property tax abatement
New machinery and equipment may be exempt from property taxes for five years anywhere in Oregon, if used in primary food processing of raw or fresh fruits, vegetables, legumes, nuts or seafood. Visit the Oregon Department of Agriculture program page for more information.
Redmond E-Commerce Zone
Also an enterprise zone, but one aimed at income tax as opposed to property tax relief, Redmond has an E-Commerce Zone which offers income tax credits for a broad range of companies, including retailers. The principal requirement is that the company pass an eligibility test for the percent of business conducted online.
See other types of incentives on our website for additional information: Income Tax Incentives, Workforce Incentives, Business Financing Solutions, and Other Incentives. For additional, more detailed information about E-Zones in Central Oregon, download an Enterprise Zone Brochure from the Publications pages.