Oregon Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Oregon, and their state economic development professionals gave us some details (business oregon site click here).
Oregon offers a substantial and varied collection of credits and incentives for new and existing businesses.  CNBC ranked Oregon #21 in their 2015 America’s Top States for Business survey (Georgia was #5 in the same survey).  Read below and see how many of these could be Above the Line:

Enterprise Zones – In exchange for investing and hiring in an enterprise zone, businesses receive exemption from local property taxes on new plant and equipment for at least three years (but up to five years) in the standard program. In addition, many zones can offer special incentives for investments in qualifying rural facilities or in electronic commerce operations.

Strategic Investment Program – The Strategic Investment Program exempts a portion of very large capital investments from property taxes for 15 years. The program is available statewide.

Construction-in-Process – Unfinished facility improvements may be exempt from local property taxes for up to two years while under construction.

Food Processing Machinery and Equipment (M&E) – For five years after it is newly placed in service, qualified M&E is exempt from property taxes if certified by the Oregon Department of Agriculture.

Electronic Commerce – Investment tax credit equals 25% of the cost incurred by an authorized business for capital assets used in electronic-commerce operations inside one of several enterprise zones.

Qualified Research Activities Credits – Corporate credit for qualified research and basic research conducted each year in Oregon, as a state-level extension to the federal program.

Oregon Investment Advantage – This program helps businesses start or locate new types of operations in a number of Oregon counties by providing an income tax subtraction, potentially eliminating state income tax liabilityon the operations for several years after they begin.

Oregon Business Expansion Program – This is a cash-based forgivable loanequivalent to the estimated increase in personal income tax revenue from new hiring.

Small Manufacturing Business Expansion Program – This is a cash-based forgivable loan for small manufacturing businesses’ expansion projects.

Film & Video Incentives – Rebate on 20% of the production’s Oregon-based goods and services.  Additional cash payment of up to 16.2% of wages paid to production personnel.  Unlike other states’ programs, these incentives are cash-based as opposed to tax credits. This simplifies and speeds up the process.

To summarize, Oregon is above average for business tax incentives in a great Pacific Northwest location.