Enterprise Zone Benefits:
The following are the standard incentives available to eligible (generally non-retail) businesses locating in any enterprise zone, subject to authorization, timely filings and criteria:
- Construction-in-Process Enterprise Zone Exemption—For up to two years before qualified property is placed in service, it can be exempt from local taxes. (For most authorized business this provides broader benefit than the regular exemption for commercial facilities under construction.)
- Three to five consecutive years of full relief from property taxes on qualified property, after it is in service.
Eligible business includes manufacturers, processors, shippers and a variety of operations that serve other organizations, as well as call centers and headquarter-type facilities. Hotel/resort businesses also are eligible in the enterprise zone. Otherwise, retail, construction, financial and certain other defined activities are ineligible.
A new building/structure, structural modifications or additions, or newly installed machinery and equipment qualify for exemption, but not land, previously used property value, self-propelled motorized vehicles, and miscellaneous personal items. A minimum investment of $50,000 is required.
Criteria for Qualifying Projects:
For the basic, three-year enterprise zone exemption period, the business needs to:
- increase full-time, permanent employment of the firm inside the enterprise zone by the greater of one new job or 10%* ;
- generally have no concurrent job losses outside the zone boundary inside Oregon;
- maintain minimum employment level during the exemption period;
- enter into a first-source agreement with local job training providers;
*If the business is expanding from a location within 30 miles of the zone and will retain its existing location, then total full-time permanent employment must increase by at least 10%
Criteria for extended tax abatement (for a total of four or five years of exemption):
This includes the criteria for the three-year enterprise zone exemption as well as the following:
- Increase full-time permanent employment by an additional 10% in year 4
- Compensation of new workers must be at or above 150% of the county average wage ($30,100)*.
- There must be local approval by written agreement with the City and other zone sponsors; and
- The company must meet any additional requirements that the local zone sponsor may reasonably request.
*Benefits, overtime, bonuses, etc. may be counted toward the 150% figure.
To learn more about Independence's Enterprise Zone and its benefits, please contact Economic Development Director Shawn Irvine 503-837-1191 sirvine [at] ci [dot] independence [dot] or [dot] us