Oregon Administrative Code

123-623-3400 Operational Changes to Existing Designations (1) The sponsor of an existing SIZ may revise any of its documentation, procedures or policies, including but not limited to establishing a different standardized agreement, subject to communicating or submitting revisions…

123-623-4000 ANNUAL PROJECT REPORTING — Submission to Department For purposes of ORS 285C.615(1) to (3) & (6) and the report submitted by a business firm subject to Abatement in the property tax year concluding as of the prior June 30: (1) The firm shall complete the prescribed r…

123-623-4100 Reporting Elements Respective or in addition to items stipulated under ORS 285C.615(2), the report submitted to the Department by a benefiting business firm described in OAR 123-623-4000 must: (1) State for the applicable tax year, as may be confirmed or corrected th…

123-623-4200 Applicable Employees and Payroll For purposes of OAR 123-623-4100(4): (1) With respect to Total Jobs, the report shall include each of the following totals for the preceding calendar year: (a) Hours paid; (b) Taxable income; and (c) Compensation. (2) Relevant jobs, h…

123-630-0000 Purpose This division of administrative rules specifies procedures and criteria necessary to administer processes under the Oregon Low Income Community Jobs Initiative for the certification of a qualified equity investment in order to receive a credit allowance for t…

123-630-0010 Definitions For the purposes of this division of administrative rules, additional definitions are found in Procedural Rules, OAR chapter 123-001. As used in OAR chapter 123 division 630 the following terms have the meanings set forth below and in ORS 285C.650-285C.65…

123-630-0020 Credit Allowance (1) A person or entity that makes a qualified equity investment shall, at the time of investment, earn a vested credit against the taxes otherwise due under ORS chapter 316, 317 or 318. (2) The total amount of the tax credit available to a taxpayer u…

123-630-0030 Eligibility (1) The following conditions and/or criteria must exist for a taxpayer to be eligible for the credit: (a) A qualified community development entity that issues a debt instrument may not make cash interest payments on the debt instrument during the period c…

123-630-0040 Ineligible Activities Not all projects or businesses will qualify for the Oregon Low Income Community Jobs Initiative. Example businesses that are ineligible include but are not limited to: (1) Residential rental; (2) Owner occupied housing; (3) Farming operations; (…

123-630-0050 Application and Fees (1) An applicant seeking to have an equity investment or long-term debt security certified as a qualified equity investment and eligible for a tax credit under ORS 285C.650 and OAR 123-630-0080 must submit an application to the department on a fo…

123-630-0060 Preference The department may give preference to applications for projects in traded sectors as identified by the Commission in the Strategic Plan and that demonstrates overall community benefit and have one or more of the following characteristics: (1) Produce goods…

123-630-0070 Reporting Requirements (1) The qualified community development entity will submit a report by the first anniversary of the initial credit allowance date that provides proof that substantially all of the cash purchase price of its qualified equity investment was used …

123-630-0080 Certification (1) Within 15 days after having received a complete application, the department will grant or deny the application in full or in part and notify the applicant of the decision. (2) If the application is deemed complete, the department will certify the pr…

123-630-0090 Limitations for Certification (1) Once the department has certified a cumulative amount of qualified equity investments that can result in the utilization of $16 million of tax credits in any tax year, the department may not certify any more qualified equity investme…

123-630-0100 Recapture of Tax Credit (1) The Department of Revenue may recapture any portion of a tax credit per ORS 285C.656 and ORS 315.533. (2) The Department of Revenue may recapture any portion of a tax credit if the qualified community development entity applies for and rec…

123-630-0110 Confidential Records (1) Upon written request and within a reasonable time, the Director or his designee shall provide program records, for inspection in accordance with ORS Chapter 192. (2) The person requesting records will be charged for preparing and mailing such…

123-635-0000 Purpose and Scope This division of administrative rules: (1) Specifies procedures and criteria for certification under the Oregon Investment Advantage Act to exempt the business income of qualified facilities from State income or corporate excise taxation under ORS 3…

123-635-0100 Definitions As used in this division of administrative rules, in addition to definitions in OAR 123-001 (Procedural Rules), unless the context demands otherwise: (1) “Business firm” means a person operating or conducting one or more trades or businesses for profit, a…

123-635-0150 Qualified Locations A proposed Facility must be inside a county as determined according to section (1) of this rule, and located at a site satisfying the requirements of section (2) of this rule, at the time when the Department receives the application for preliminar…

123-635-0175 Unique Operations Under ORS 285C.503(5)(e), a business firm’s operations that comprise a Facility proposed for preliminary certification must be new business operations respective to the site of the Facility and to any other location in this state where the firm also…

123-635-0200 Preliminary Certification Application For purposes of ultimately seeking the exemption under ORS 316.778 or 317.391: (1) A business firm must complete an application for preliminary certification and send it to the Department, as follows: (a) Using the form prescribe…

123-635-0250 Determination of Preliminary Certification Pursuant to a filing of a preliminary certification application as described in OAR 123-635-0200: (1) The Department shall: (a) Review the application for completeness; and (b) Determine whether the business firm and the app…

123-635-0270 Local Objection and Relevant Requirements Respective to a proposed Facility: (1) For purposes of section (2) of this rule, a Municipal Corporation may object to preliminary certification through a formal submission to the Department, but the Department must receive t…

123-635-0300 Annual Certification For purposes of certification of a Facility pursuant to each income or corporate excise tax year of the business firm under ORS 285C.506: (1) A preliminarily certified business firm that owns or leases and operates the Facility must file the appl…

123-635-0350 Issues of Initial and Subsequent Annual Certifications For purposes of annual certification as described in OAR 123-635-0300: (1) The preliminarily certified business firm needs to have: (a) Fully acquired Facility property and completed it in terms of construction, …

123-635-0400 Application Fees, Waivers With respect to application fees as described in this division of administrative rules: (1) The Department may excuse the fee or reduce the required amount: (a) If a business firm's Facility readily qualifies for certification, but as determ…

123-650-0001 Purpose and Scope (1) This division of administrative rules governs the existence, modification and termination of regular enterprise zone areas under ORS 285C.050 to 285C.250 (Oregon Enterprise Zone Act) that are: (a) Sponsored by city, port and county governments; …

123-650-0066 Enterprise Zone Existence (1) On and after October 5, 2015, there is no statewide numerical limit on enterprise zone designations or re-designations under ORS 285C.065 and 285C.250. (2) In addition, there are allowed: (a) Designations based on a federal enterprise zo…

123-650-0100 Definitions ORS 285C.050 and OAR 123-001 (Procedural Rules) contain definitions used in this division of administrative rules. In addition, unless the context demands otherwise: (1) Census Statistical Unit includes any standard geographic area, jurisdictional entity,…

123-650-0500 Local Government Sponsorship or Consent For purposes of enterprise zone designations, re-designations or boundary changes: (1) The zone shall be sponsored by, and only by, the governing body of every city, port or county, in whose territory the zone is located, with …

123-650-0600 Zones Allowed per Jurisdiction Enterprise zone designations, re-designations and boundary changes are subject to negative determinations under ORS 285C.074 and 285C.117, if needlessly redundant, in that: (1) Whenever practical, would-be Sponsoring Government(s) shall…

123-650-0700 Rural and Urban Designations As defined under ORS 285C.050, an enterprise zone is categorized as either ‘rural’ or ‘urban’ under ORS 285C.050(18) or (22), such that: (1) As used in ORS 285C.050(22), “regional or metropolitan urban growth boundary” means the UGB encom…

123-650-1000 DIMENSIONS AND BOUNDARIES — Size and Distances For purposes of an enterprise zone designation, re-designation or boundary change: (1) Except as allowed in OAR 123-650-1100: (a) The straight-line distance between any two points within the zone may not exceed 12 miles …

123-650-1100 Extended Rural Distances For purposes of ORS 285C.050(19), 285C.090(4) and 285C.120: (1) This rule has no bearing on total enterprise zone area as limited in OAR 123-650-1000(3) and applies only to rural enterprise zones that are or will be at least partially outside…

123-650-1500 Mapping and Defining Zone Boundary Any enterprise zone designation, re-designation or boundary change shall demonstrate adherence to OAR 123-650-1000 or 123-650-1100 by including all of the following with the documentation submitted to the Department under ORS 285C.0…

123-650-4000 DESIGNATIONS & BOUNDARY CHANGES — Initiating Designation To designate or re-designate an enterprise zone under ORS 285C.065 or 285C.250: (1) The process begins with the Sponsoring Government(s) sending a formal advisory to the Department of its intent to re-/designat…

123-650-4100 Documentation Pursuant to Zone Designation Upon designation or re-designation of an enterprise zone, for purposes of ORS 285C.074: (1) The Sponsoring Government(s) must complete a form available from and submit it to: Incentives, Business Oregon, State Lands Building…

123-650-4200 Mandatory Economic Need for Zone Designation For purposes of designation or re-designation, the local area of the enterprise zone must exhibit economic hardship, in that: (1) Except as allowed in section (2) of this rule, an enterprise zone must meet one of the follo…

123-650-4400 Documentation with Boundary Changes For purposes of ORS 285C.117: (1) The zone sponsor (including with any new cosponsor) may change the boundary of the enterprise zone under ORS 285C.115 and then submit documentation to the Department (electronically as desired), at…

123-650-4500 Economic Conditions for Areas Added by Boundary Changes Under ORS 285C.115(2)(c), an area may be added to an enterprise zone only if it and adjoining residential areas are economically comparable to the original enterprise zone: (1) Economic statistics or data for th…

123-650-4600 Additional Issues with Boundary Changes With respect to any enterprise zone boundary change under ORS 285C.115: (1) Usable land described in section (2) of this rule must comprise: (a) At least 25 percent of what is added (except as specially allowed by the Departmen…

123-650-4800 Local Resolutions and Hotel/Resort Option For purposes of city, port or county resolutions to designate, re-designate or amend an enterprise zone: (1) In the case of designation or re-designation, the resolution by a Sponsoring Government shall be adopted only: (a) A…

123-650-4900 Agency Determinations The Department shall thoroughly review the documentation submitted with an enterprise zone designation, re-designation or boundary change, as described in OAR 123-650-4100 or 123-650-4400, and shall notify the submitter as soon as possible of th…

123-650-5000 LOCAL TAXING DISTRICTS — Regular Designation Notice (1) The designation or re-designation of an enterprise zone under ORS 285C.065 or 285C.250 must entail notice to and consultation with local taxing districts that: (a) Formally commences only after the Department co…

123-650-5100 Public Meeting for Regular Designations For purposes of ORS 285C.067, the Sponsoring Government(s) shall conduct a public meeting (though not necessarily hold a public hearing or issue a public notice for the meeting): (1) That occurs not less than seven days before …

123-650-5200 Consultations Generally with Taxing Districts (1) In anticipation of or subsequent to the meeting described in OAR 123-650-5100, or as otherwise warranted with an enterprise zone designation, re-designation or boundary change, the Sponsoring Government(s) or zone spo…

123-650-5300 Fee Rates to Support Oregon Schools (1) A positive determination by the Department of any designation or re-designation of an enterprise zone under ORS 285C.074 depends on setting a rate or rates for support fees with K–12 school districts: (a) As part of requisite c…

123-650-5500 Notice for Boundary Changes A change to an existing enterprise zone boundary must entail notice to local taxing districts before the submission under ORS 285C.117 to the Department that generally conforms to that described in OAR 123-650-5000, except: (1) The notice …

123-650-9100 ZONE TERMINATION — Events and Timing For purposes of these administrative rules and designations or re-designations of enterprise zones by city, port or county governments: (1) The official existence of such an enterprise zone concludes for one of three reasons: (a) …

123-650-9500 Business Tax Abatements and Zone Termination In relation to OAR 123-650-9100(1) when an enterprise zone terminates: (1) This rule defines the effect for exemptions on business property under: (a) ORS 285C.175 consistent with OAR 123-674 for standard enterprise zone t…