Bill > HB3049

This bill modifies Oregon's tax exemption program for business development in rural and economically challenged areas, updating several key definitions and application requirements for businesses seeking tax benefits. The bill revises the definition of a "qualified location" to include areas outside urban growth boundaries of large cities or within smaller towns, and changes how county economic performance is evaluated for eligibility. It introduces new definitions for annual wages, average wages, and population, and adjusts the employee wage requirements for businesses seeking tax exemptions. Specifically, businesses must now hire at least five full-time employees and pay wages that are 110% of the local average for new hires and 100% of the local average across all employees. The bill also increases the application fees, extends the timeframe for potential tax exemptions, and requires that the new business operations be genuinely new to the area or the company's existing operations. The changes aim to provide more precise guidelines for economic development incentives, ensuring that tax exemptions are targeted at creating meaningful new economic opportunities in less prosperous regions of Oregon. The bill will take effect 91 days after the 2025 legislative session adjourns, with different provisions applying to preliminary and annual certifications at varying dates.

Budget and Finance, Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3049