OregonHB 40842026 Regular SessionHouse

Relating to economic development; and prescribing an effective date.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Faster state permits for major projects

A new Governor’s Office Joint Permitting Council coordinates faster state approvals for major public and private projects. Investment thresholds exceed $100 million inside a metropolitan service district’s urban growth boundary, $50 million outside it, or $25 million in a nonurban county. Projects need multiple state approvals, target-industry job or economic growth, readiness, land-use compatibility, and no existing-permit renewals. After council and Regional Solutions review, the Governor approves participation, with no new approvals while 15 projects are underway. Members must be appointed by July 1, 2026, and criteria adopted by October 1, 2026; project plans set shorter timelines, monthly updates, and annual reporting.

More businesses qualify for zone incentives

Businesses in priority industries named by a zone sponsor’s resolution under a local or regional development plan can qualify for enterprise-zone incentives. Business Oregon can approve waivers or pilots for otherwise excluded businesses under state approval rules. Sponsors must request these in writing and show community benefit, innovation, or alignment with local development goals. Written agreements also let businesses phase or delay hiring, or use job retention or wage growth instead. Businesses must show a clear plan; missing agreed goals disqualifies them, and data centers cannot use this hiring option.

Data centers face tax-break approval delay

Data center projects cannot receive enterprise-zone authorization for a property-tax exemption until 90 days after Oregon’s 2027 regular legislative session adjourns. The temporary restriction is repealed January 2, 2029.

Business hiring credit comes with limits

The law creates a nonrefundable business tax credit of $1,000 per qualifying net new Oregon job. It covers up to 10 jobs per taxpayer each tax year, for a maximum of $10,000. Both the business’s main industry and the new jobs must be in qualified industries. Each position must pay at least 150% of the applicable minimum wage. Businesses must get written eligibility certification from Business Oregon before claiming the credit.

Longer property-tax breaks for zone businesses

Eligible enterprise-zone businesses can extend the usual three-year property-tax break through an agreement signed by authorization. One option adds up to two tax years, subject to school support fees. A sponsor-requested longer extension lasts no more than 10 years and requires substantial investment, regional economic impact, or alignment with local goals. Rural zones and urban areas with fewer than 400,000 residents generally require new workers’ average compensation to reach 150% of county average wages, or 130% in qualified rural counties; average wages must also reach 100%. Larger urban areas require sponsor-set conditions, and data centers cannot receive extensions.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 107 • No: 16

Senate vote • 3/6/2026

Third reading. Carried by Meek. Passed.

Yes: 21 • No: 8

House vote • 3/4/2026

Third reading. Carried by Nguyen D. Passed.

Yes: 50 • No: 5

legislature vote • 3/2/2026

Ways and Means: Heard and Reported Out with Amendments

Yes: 21 • No: 1

House vote • 2/19/2026

Revenue: Heard and Reported Out with Amendments

Yes: 5 • No: 1

House vote • 2/9/2026

Economic Development, Small Business, and Trade: Heard and Reported Out with Amendments

Yes: 10 • No: 1

Actions Timeline

  1. Chapter 50, (2026 Laws): Effective date June 5, 2026.

    4/6/2026House
  2. Governor signed.

    3/31/2026House
  3. President signed.

    3/10/2026Senate
  4. Speaker signed.

    3/10/2026House
  5. Vote explanation(s) filed by Sollman.

    3/6/2026Senate
  6. Pham, granted unanimous consent to change vote to nay.

    3/6/2026Senate
  7. Third reading. Carried by Meek. Passed.

    3/6/2026Senate
  8. Second reading.

    3/5/2026Senate
  9. Recommendation: Do pass the C-Eng. bill.

    3/5/2026Senate
  10. Referred to Ways and Means.

    3/4/2026Senate
  11. First reading. Referred to President's desk.

    3/4/2026Senate
  12. Third reading. Carried by Nguyen D. Passed.

    3/4/2026House
  13. Second reading.

    3/3/2026House
  14. Recommendation: Do pass with amendments and be printed C-Engrossed.

    3/3/2026House
  15. Work Session held.

    3/2/2026House
  16. Returned to Full Committee.

    3/2/2026House
  17. Public Hearing and Work Session held.

    3/2/2026House
  18. Assigned to Subcommittee On Capital Construction.

    2/26/2026House
  19. Referred to Ways and Means by prior reference.

    2/23/2026House
  20. Recommendation: Do pass with amendments, be printed B-Engrossed, and be referred to Ways and Means by prior reference.

    2/23/2026House
  21. Work Session held.

    2/19/2026House
  22. Public Hearing held.

    2/16/2026House
  23. Referred to Revenue by prior reference and then Ways and Means .

    2/12/2026House
  24. Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Revenue by prior reference, then be referred to Ways and Means by prior reference.

    2/12/2026House
  25. Public Hearing and Work Session held.

    2/9/2026House

Bill Text

  • JWM Amendment -B26 (Adopted)

    3/2/2026

  • JWMCC Amendment -B15 (Proposed)

    3/2/2026

  • JWMCC Amendment -B19 (Proposed)

    3/2/2026

  • JWMCC Amendment -B20 (Proposed)

    3/2/2026

  • JWMCC Amendment -B21 (Proposed)

    3/2/2026

  • JWMCC Amendment -B24 (Proposed)

    3/2/2026

  • HREV Amendment -A10 (Proposed)

    2/19/2026

  • HREV Amendment -A11 (Proposed)

    2/19/2026

  • HREV Amendment -A12 (Proposed)

    2/19/2026

  • HREV Amendment -A13 (Proposed)

    2/19/2026

  • HREV Amendment -A14 (Adopted)

    2/19/2026

  • HREV Amendment -A7 (Proposed)

    2/19/2026

  • HREV Amendment -A8 (Proposed)

    2/19/2026

  • HREV Amendment -A9 (Proposed)

    2/19/2026

  • HREV Amendment -A5 (Proposed)

    2/16/2026

  • HECDSB Amendment -4 (Adopted)

    2/9/2026

  • HECDSB Amendment -1 (Proposed)

    2/4/2026

  • A-Engrossed

  • B-Engrossed

  • C-Engrossed

  • Enrolled

  • House Amendments to A-Engrossed

  • House Amendments to B-Engrossed

  • House Amendments to Introduced

  • Introduced

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