Local Option - Rural Renewable Energy Development Zones

Last updated: August 28, 2018

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Oregon
Incentive Type:Property Tax Incentive
Web Site:http://www.oregon4biz.com/Oregon-Business/Tax-Incentives/Renewable-Energy/Zones/
Administrator:The Oregon Business Development Commission
Eligible Renewable/Other Technologies:Geothermal Electric, Solar Photovoltaics, Wind (All), Biomass, Wave, Hydroelectric (Small)

Authorities

Name:ORS §285C
Name:OAR 123-680
Effective Date:06/14/2010

Summary

Cities, counties, or several contiguous counties in Oregon can set up Rural Renewable Energy Development Zones. The zone can only cover territory outside of the urban growth boundary of any large city or metropolitan area. Businesses must meet certain employment and/or investment requirements to be eligible.

Commercial renewable energy property in these zones are eligible for a 3 to 5 year local property tax exemption. Eligible property includes either wind, geothermal, solar, biomass, or other unconventional forms of electricity generation, or systems that produce, distribute or store biofuels. Each zone sets a local cap for the total value of property that can qualify for the abatement, up to $250 million. Interested businesses must apply for authorization before construction or installation begins.

Depending on the zone, businesses may also be eligible for other local property tax incentives. For a current list of designated zones, see the program website listed above. 

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