What is an Enterprise Zone? 

Oregon’s Enterprise Zones offer a unique resource to local communities, unmatched by any other business incentive. Besides this short-term property tax abatement, an Enterprise Zone lends visibility and focus to local economic development efforts.

The Enterprise Zone, through a short-term tax exemption, induces eligible business firms to make additional investments that will improve employment opportunities, spur economic growth, diversify business activity and contribute to competitiveness in economically distressed areas of the state.

These zones offer a 100% abatement for three consecutive years from the property taxes assessed on new capital of private companies seeking to start or enlarge operations. By forgiving the local property taxes on new buildings and equipment for three years, enterprise zones have led to thousands of new jobs through investments by eligible business operations. Local jurisdictions may also extend the property tax exemption up to five consecutive years for especially high paying jobs, and if additional local requirements are met by the business firm.

Sponsored by local city and/or county governments, an enterprise zone is a discrete area or areas no larger than 12 square miles in total size. The maximum number of zones allowed in Oregon is 37. Each Enterprise Zone terminates after 10 years of existence.   Subject to local economic hardship and potential competition among applicants for available zones, the Director of the Oregon Economic Development Department designates zones to replace those that have terminated. County assessors and local zone managers handle the day-to-day oversight of their Enterprise Zones and business assistance, with support and coordination from state agencies.

The incentive for new private investment and employment may be critical for healthy employment growth and business diversification.

Eligible business firms must "precertify" prior to commencing construction. Such firms include manufacturers, processors, shippers and other operations that serve businesses. Retail, construction, financial and certain other activities are not eligible. Qualified property is limited to new buildings, additions, equipment and machinery.

Besides being engaged in an eligible operation/activity, requirements in order for a business firm to receive an Enterprise Zone exemption are as follows: