Businesses choosing to grow in Oregon will find a helping hand in state government. Business Oregon, the state’s official economic development agency, stands ready to assist qualifying companies with a variety of financial incentives.
From July 2022 to June 2023, the state assisted 718 corporate investment expansion projects with a total of $457 million in incentives, grants and loans. Fully 50% of these projects went to locations in rural communities.
State assistance programs supported the creation of 541 jobs statewide in fiscal year 2023, well above the prior two years of reporting. Emergency Business Assistance Grants, which are separately administered in Oregon, supported the generation of an additional 1,517 jobs during FY 2023.
Business Oregon funds also made possible the retention of 8,438 jobs at Oregon businesses last year. Since the start of FY 2021, Business Oregon has facilitated the retention of more than 28,000 jobs in the private sector.
Business Oregon organizes its programs intentionally to assist small and medium-market employers. Of all jobs created statewide last year by state incentive programs, 80% of them were at companies employing 500 workers or less.
A popular incentive in Oregon is the Property Tax Abatement Program. According to the FY 2023 Annual Report of Business Oregon, “Companies in Oregon using the Enterprise Zone (E-zone) program and the Strategic Investment Program (SIP) reported creating a total of 22,053 jobs in FY 2023. Business Oregon helps administer the SIP and E-zone programs that provide property tax abatement for growing firms for specified time periods. This is a new performance measure to reflect the importance of these two property tax programs to Oregon’s economy, and importance to economic development efforts in communities as they work with local businesses on expansion projects.”
State funds support the growth of rural tourism, including this tourism studio in Coos Bay.
Photo courtesy of Travel Oregon
All CHIPS Are on the Table
It is also worth noting that the 2023 Legislative Session in Oregon approved a budget for Business Oregon of just under $2 billion. Specifically, the budget funds eight new grant programs and 19 new infrastructure projects. Lawmakers also passed Senate Bill 4, the Oregon Chips fund act, which sets aside $240 million in state funding to assist in the expansion of semiconductor manufacturing across the state. House Bill 2009 includes a complementary research and development tax credit for businesses engaged in various aspects of the semiconductor supply chain.
Business Oregon also supports startups. On May 3, the agency announced the award of $6.5 million to two startup organizations: the Oregon Venture Fund and the Oregon Nanoscience and Micro-technologies Institute (ONAMI). These grants resulted in more than $15 million being invested in multiple Oregon startup ventures.
“Oregon’s high-potential startups are creating high-wage jobs, local wealth, and seeding the industries of our region’s future,” said Eric Rosenfeld, co-founder of the Oregon Venture Fund. “We’re confident that this partnership between the Oregon Venture Fund and Business Oregon will broaden and deepen access to venture capital across our state.”
From July 2022 to June 2023, the state assisted 718 corporate investment expansion projects with a total of $457 million in incentives, grants and loans.
— Source: Business Oregon Annual Report
For more information on these and other programs, go to www.oregon.gov/biz.
