Enterprise zones are designed to encourage business investment through property tax exemption, in designated areas of Clackamas County. Locating or expanding into an enterprise zone provides eligible businesses property tax exemption on new construction and equipment for a period of three years to five years.
How it works
Standard incentives are available to eligible businesses locating in an enterprise zone, subject to authorization, timely filings and criteria:
- Construction-in-Process Enterprise Zone Exemption – up to 2 years before qualified property is placed in service, can be exempt from local taxes. For most authorized business this provides broader benefit than the regular exemption for commercial facilities under construction.
- 3 to 5 consecutive years of property tax exemption on qualified property, after it is in service.
Eligibility
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 are eligible in the Estacada Enterprise Zone, where allowed under zoning code. Retail, construction, financial, cannabis-related and certain other defined activities are ineligible.
Qualified Property
A new building/structure, structural modifications or additions, or newly installed FIXED machinery and equipment qualify for exemption. Nonqualified items include land, previously used property value, rolling/unfixed machinery, and miscellaneous personal items.
E-commerce Overlay
Estacada also recently adopted an “electronic commerce overlay” in the enterprise zone, expanding the list of eligible firm- and investment-types that may be eligible for enterprise zone tax abatement,
A qualified E-Commerce investment includes material resources related to E-Commerce, such as facilities, computers, equipment, networks, servers, etc. pertaining to the E-Commerce related business-to-business transactions of the firm.
Criteria
For the standard, 3-year enterprise zone exemption, the business should meet the following criteria:
- Increase full-time, permanent employment by 10%;
- Pay employees at least 150% of the State minimum wage (benefits can be used to reach this pay level);
- Maintain minimum employment level during the exemption period;
- Enter into a first-source agreement with local job training providers; and
pay an application fee of 0.1% of the proposed total investment.
Criteria for the extended tax exemption (for a maximum of a five-year exemption): The business should meet the criteria for the three-year enterprise zone exemption as well as the following:
- Compensation of new workers must be at or above 150% of the County average wage $33.47 per hour/$69,621 annual for 2016 (benefits can be used to reach this pay level);
- There must be local approval by written agreement with the local zone sponsor; and
the company must meet any additional requirements that the local zone sponsor may reasonably request.
For more information, or to apply, please contact:
Community Development Department
Zoning & Planning
Business & Economic Development – Clackamas County
Cindy Moore, Enterprise Zone Manager,
(503) 742-4328
Email Cindy Moore
Supporting Documents
Enterprise Zone Informational Flyer (PDF)
Business Oregon’s Guide to Enterprise Zones (PDF)
PZone Map (PDF)