STATE TAX INCENTIVES

Oregon offers a notably business-friendly tax environment: no sales tax, no equipment tax (other than on purchases), no inventory tax, and no motor vehicle excise tax. The state also maintains an active Enterprise Zone program providing 100% property tax abatement for 3–5 years (see Local Incentives).

State Incentive Programs

Strategic Investment Program Offers a 15-year property tax exemption on investments exceeding $25 million in rural locations or $100 million in urban ones. Subject to approval by the County Board of Commissioners and participating tax districts. Participating firms pay an annual community service fee equal to 25% of the exemption, capped at $2,500,000 per year.

Immediate Opportunity Fund (IOF) Supports primary economic development through street and road construction and improvements. The IOF provides a 50% matching grant to local jurisdictions — up to $1,000,000 — tied to job creation. Access is discretionary and intended to influence a firm's location, relocation, or retention in Oregon. Funds are limited to publicly owned streets and roads and may only be used when other funding sources are unavailable or insufficient.

Special Public Works Fund Loans and grants are available to local governments to facilitate economic and community development. Grants support construction projects that create or retain traded-sector jobs, and are limited to $500,000 or 85% of project cost (whichever is less), calculated at up to $5,000 per eligible job. Funds must be applied to publicly owned infrastructure such as roads, water, or sewer systems.

Governor's Strategic Reserve Fund A discretionary tool for projects with significant economic development impact, requiring an extensive vetting process with final approval by the Governor. Business Oregon works with the applicant company to define the funding amount needed and to establish a public or community benefit as a condition of the award. The Regional Development Officer leads those negotiations.

Oregon Business Expansion Program A cash-based forgivable loan equivalent to the estimated increase in personal income tax revenue generated by new hiring. Eligible companies must have at least 150 U.S. employees and create a minimum of 50 new jobs paying wages that exceed 150% of the county or state average wage, whichever is less.

Oregon Emerging Opportunity Fund A program created in the most recent Legislative session and designed for maximum flexibility and broad applicability. Rules are currently in draft stage.

Single Sales Factor Oregon uses a "Single Sales Factor" approach to corporate income tax, meaning only Oregon-based sales are considered when calculating taxes owed to the state — payroll and assets are excluded. This is a significant advantage for multi-state companies headquartered in Oregon: a company selling products nationally or globally pays Oregon corporate income tax only on income derived from sales within the state.

Finance Programs Business Oregon offers a range of financing options, including direct loans through the Oregon Business Development Loan Fund, loan guarantees via the Credit Enhancement Fund, and an Express Bond program that issues state-backed revenue bonds for qualified projects.

LOCAL INCENTIVES

South Columbia County Enterprise Zone Oregon's enterprise zones provide eligible businesses with full exemption from local property taxes on new investments for a defined period. The Columbia Economic Team serves as Enterprise Zone Manager, with each Zone sponsor represented as a member.

Standard Program Non-retail businesses that locate or expand within an enterprise zone receive total exemption from property taxes on new plant and equipment. Benefits — subject to local authorization, timely filings, and eligibility criteria — include:

  • Construction-in-Process Exemption: Qualified property can be exempt from local taxes for up to two years before it is placed in service, potentially covering a broader range of property than the standard commercial construction exemption.

  • Full Property Tax Relief: Three to five consecutive years of complete property tax exemption on qualified property once it is in service.

    Long-term Rural Enterprise Zone Facilities

    Available in most rural designations, the long-term program extends property tax abatement to

    as many as 15 years on new facility improvements and installations. Any type of business

    activity is eligible, but these incentives depend on local approval and varying levels of minimum

    investment, job creation and employee compensation at the facility, depending on location. The

    South Columbia County Enterprise Zone is not currently a Long-term Rural Zone, but that is an

    option that can be explored.

    The established goals of the Urban Renewal Agency are to:

    1. Improve transportation, water, wastewater and storm-water infrastructure to

    support job growth.

    2. Promote the emergence of a vibrant town center as a civic and cultural hub

    for Scappoose that is connected to surrounding neighborhoods and employment areas.

    3. Encourage redevelopment and infill in the town center.

    4. Support the growth and retention of local businesses.

    https://www.scappoose.gov/ed/page/urban-renewal