Oregon Administrative Code

123-668-2300 Reasonableness This rule offers guidance for evaluating whether local additional enterprise zone requirements are reasonable, such that: (1) The requirements shall not vary dramatically or erratically over time for business firms interested in investing in the zone a…

123-668-2400 Zone Sponsor Policies In terms of the means and authority by which local additional requirements are put into effect: (1) An enterprise zone sponsor shall consider a policy-making approach to achieve accountability and maintain consistency in imposing or setting such…

123-668-2450 Approving Agreements The sponsoring city, port or county governments of an enterprise zone may authorize the written agreement with a business firm in the case of OAR 123-668-2000(1) or (2)(a) or 2(b) through a number of approaches, which may differ among the cospons…

123-668-2500 Additional Conditions in an Urban Zone For purposes of OAR 123-668-2000(2)(c) and additional conditions imposed on eligible business firms by the sponsor of an urban enterprise zone under ORS 285C.150: (1) The sponsor of the enterprise zone shall abide by OAR 123-668…

123-668-3000 REQUSITE OPENNESS & COMMUNICATION — Posted Agreements For purposes ORS 285C.163 and 285C.407: (1)(a) A written agreement under ORS 285C.160 or 285C.403(4) between a business firm and an enterprise zone sponsor does not come into effect until it has been posted online…

123-668-3500 Infrastructure in Neighboring Jurisdictions Under ORS 285C.142 and 285C.404, for any situation relevant to OAR 123-668-3000, if the zone sponsor determines that future investments or operations of the business firm in using the enterprise zone will potentially have a…

123-668-4000 SUPPORT FEES FOR OREGON SCHOOLS — Applicability and Rate Setting Under ORS 285C.162 and 285C.405, for purposes of school support fee rates in an agreement between a business firm and the sponsor of an enterprise zone under ORS 285C.160 and 285C.403(4), exclusively as…

123-668-4100 Fee Rate Characteristics As established according to OAR 123-650-5300 or 123-668-4000, the fee rate for school support: (1) Must be exactly the same for every agreement under ORS 285C.160 or 285C.403(4) with any business firm with exempt property inside the same area…

123-668-4200 Fee Payment and Administration For purposes of an agreement between an enterprise zone sponsor and a business firm and the school support fee rate as described in OAR 123-668-4000 and 123-668-4100: (1) Fees are not collected for: (a) The first, second or third year o…

123-668-4300 Fee Delinquency In relation to the school support fee in an agreement entered into between a zone sponsor and a business firm under ORS 285C.160 or 285C.403(4): (1) Pursuant to timely notice in OAR 123-668-4200(4), except as otherwise specified in the agreement accor…

123-670-0001 Purpose and Scope (1) The purpose of OAR 123-670-0001 through 123-670-0110 is to implement Oregon Laws 2026, chapter 142, section 12 to 15 (SB 1507), as amended by Oregon Laws 2026, chapter 50, section 16 (HB 4084), which establishes the Qualified Jobs Creation Tax C…

123-670-0010 Definitions (1) For the purposes of OAR 123-670-0001 through 123-670-0110, in addition to definitions found in OAR 123-001-0050 (Procedural Rules), the following terms have the meanings set forth below, unless the context clearly indicates otherwise. (2) "Annual Prog…

123-670-0011 Qualified Industry Definitions (1) This rule defines the qualified industries eligible for the Qualified Jobs Creation Tax Credit. A taxpayer must have its primary business activity in one of these industries to be eligible for certification. (2) A business whose pri…

123-670-0015 Taxpayer Identification and Filing Structure (1) This rule establishes how the term "taxpayer" is applied for purposes of QJCTC certification and eligibility under these rules, including rules governing individual filers, corporations included in Oregon consolidated …

123-670-0020 Eligibility Requirements (1) A taxpayer is eligible to apply for QJCTC certification for a tax year if the taxpayer meets all of the following requirements: (a) Industry eligibility. The taxpayer's primary business activity during the tax year for which the credit is…

123-670-0030 Application Requirements (1) Application Period. OBDD shall announce the tax credit certification application period for each tax year on its website no later than June 30 of the calendar year in which the tax year begins. The application period shall open no earlier…

123-670-0040 Qualified Industry Determination for Applicants Without a Listed NAICS Code (1) Applicability. This rule applies to taxpayers who demonstrate industry eligibility under OAR 123-670-0020(1)(a)(B) by submitting a written statement in lieu of a listed NAICS code. Review…

123-670-0050 Certification Process (1) Overview. OBDD shall review all timely and complete applications submitted under OAR 123-670-0030 in accordance with this rule. OBDD will issue certifications after the close of the application period. (2) Application Tracking Number. Upon a…

123-670-0060 Annual Program Cap Administration (1) Annual Program Cap. The total amount of tax credits that may be certified by OBDD for all taxpayers in a single tax year may not exceed $12,500,000, as provided in Oregon Laws 2026, chapter 142, section 12 (SB 1507). (2) Cap Trac…

123-670-0070 Net New Job Calculation (1) Purpose. This rule establishes the methodology for calculating net new jobs for purposes of determining a taxpayer's eligibility and credit amount under these rules. The calculation is based on the change in a taxpayer's average annual cov…

123-670-0080 Net New Job Calculation: Mergers, Acquisitions, and Reorganizations (1) Purpose. This rule establishes the methodology for calculating net new jobs under OAR 123-670-0070 when a taxpayer has undergone a merger, conversion, reorganization, consolidation, or acquisitio…

123-670-0090 Business Data Confidentiality and Reporting (1) Purpose. This rule establishes requirements governing the confidentiality of information submitted by taxpayers in connection with QJCTC applications and certifications under these rules, and OBDD's obligations for annu…

123-670-0100 Revocation of Certification (1) Authority. The Director of the Oregon Business Development Department may order the revocation of a tax credit certification as provided in ORS 315.061. (2) Grounds for Revocation. OBDD may revoke a certification if the OBDD Director d…

123-670-0110 Recordkeeping (1) Purpose. This rule establishes recordkeeping requirements for taxpayers that apply for or receive certification under these rules. (2) General Retention Requirement. As provided in OAR 123-670-0030(8), a taxpayer must retain all records supporting i…

123-674-0001 Purpose, Scope and General Process for Businesses Seeking Exemption (1) This division of administrative rules clarifies, specifies and establishes elements of ORS 285C.050 to 285C.250 (Oregon Enterprise Zone Act) for the determinations, procedures and requirements re…

123-674-0100 Definitions OAR 123-001 (Procedural Rules) contains definitions that are used in this division of administrative rules along with terms under ORS 285C.050. Additionally, for purposes of these rules, the following terms have the meanings set forth below unless the con…

123-674-0200 General Employment Terminology and Issues As used in this division of administrative rules, especially OAR 123-674-0100 and 123-674-4000 to 123-674-4800, in determining business firm job levels: (1) Averaging based on hours worked, hour paid or the like, such as full…

123-674-0300 Satisfaction of ORS 285C.200 Requirements (1) An authorized business firm must meet the eligibility qualifications provided for in ORS 285C.200 for qualified property of the firm to be exempt from property taxation under ORS 285C.175. (2) Notwithstanding (1) above, t…

123-674-0350 Alternative Performance Criteria for Authorized Business Firms (1) As provided by ORS 285C.200(2)(b), a sponsor and business firm may agree to waive the employment qualifications of ORS 285C.200(c), and instead impose alternative performance criteria to maintain the …

123-674-0400 Flexible Hiring Timelines (1) As provided by ORS 285C.200(2)(a), a sponsor and business firm may agree to use a flexible hiring timeline to meet the employment qualifications of ORS 285C.200(c)(A)-(B) rather than the timeline provided in ORS 285C.200(1)(c) (which is …

123-674-0500 EXTENDED TAX ABATEMENT — General Points With respect to an extended period of property tax abatement longer than three years under ORS 285C.160 and 285C.175(2)(b): (1) The period in which a qualified business firm needs to comply with all regular enterprise zone requ…

123-674-0600 Compensation & Wage Standards For purposes of ORS 285C.160 and a qualified business firm subject to a written agreement described in OAR 123-674-0700: (1) In order for the firm to receive the additional one or two years of exemption on qualified property inside any e…

123-674-0700 Written Agreement between Sponsor and Eligible Business Firm For purposes of the written agreement that is required between the sponsor of an enterprise zone and an eligible business firm under ORS 285C.160: (1) To receive an additional one to seven years of exemptio…

123-674-1000 BUSINESS ELIGIBILITY — Special Business Distinctions For these administrative rules: (1) As used in ORS 285C.050 to 285C.250, “hotel, motel or destination resort” means any ‘destination resort’ or ‘hotel or motel’ facility as defined in OAR 150-285-3200. (2) “Fulfill…

123-674-1100 Basic Eligibility of Firms and Operations For purposes of establishing a business firm’s eligibility under ORS 285C.135(1) in an enterprise zone: (1) The Firm/applicant (when qualified) must: (a) Be a business firm under ORS 285C.050 consistent with OAR 123-674-1000(…

123-674-1200 Ineligible Activities For purposes of ORS 285C.135: (1) Unless approved through a waiver or an authorized a pilot program pursuant to ORS 285C.135(3)(b), a business firm engaged in any of the following business activities is not an eligible business firm, and propert…

123-674-1300 Eligible Business Firm with Ineligible Activities For purposes of ORS 285C.135(3)(a): (1) A Firm/applicant is eligible: (a) If when qualified, it engages in an eligible activity in the enterprise zone; (b) Provided that any ineligible activity of the Firm/applicant i…

123-674-1400 Gross Receipts Test (1) A gross receipts test shall determine the eligibility of a business firm or business operation that partially involves an ineligible activity only when: (a) There are Applicable Gross Receipts; (b) The firm is not eligible as described in OAR …

123-674-1600 Call Centers and Like Operations For purposes of ORS 285C.135(4)(a): (1) A Firm/applicant and its operations are eligible, regardless of retail transactions, financial services or other ineligible activities, if: (a) They serve the firm or its clients exclusively thr…

123-674-1700 Headquarter Facilities For purposes of ORS 285C.135(4)(b): (1) A Firm/applicant and its operations are eligible, regardless of retail, financial, professional or other such ineligible activities, if: (a) The business is operating substantially at two or more location…

123-674-2000 AUTHORIZATION PROCESS — Timely Submission For purposes of ORS 285C.140(1): (1) In applying for authorization with the sponsor of an enterprise zone and the county assessor, the Firm/applicant shall: (a) Fill out the Application as completely as the Firm/applicant is …

123-674-2100 Allowably Late Applications Notwithstanding OAR 123-674-2000(2), the zone manager may accept an Application after: (1) Certain physical work that consists only of: (a) Demolition, cleanup, environmental remediation, removal of hazardous materials, and so forth; (b) O…

123-674-2300 Initial Processing by Local Zone Manager Following submission of an Application: (1) The local zone manager may collect an authorization filing fee as described in OAR 123-668-1700. (2) The local zone manager shall deny the Application if finding: (a) The Firm/applic…

123-674-2500 Final Processing Pursuant to OAR 123-674-2300: (1) The county assessor or county assessment staff to whom the assessor delegates enterprise zone duties shall: (a) Accept any requisite invitation to a Preauthorization Conference, as feasible and warranted; (b) Approve…

123-674-3000 AUTHORIZATION'S COVERAGE & EFFECT — Being An Authorized Firm (1) For purposes of ORS 285C.050 to 285C.250 and this division of administrative rules, the Firm/applicant becomes “authorized” only upon fulfillment of OAR 123-674-2500(5). (As applicable, the Established …

123-674-3100 Limitations on Exemption Relative to Authorization Under ORS 285C.180(2)(d) to (f) and 285C.225(3), the Application and information in it restrict what will be exempt under ORS 285C.170 or 285C.175 in only the following four ways, in that qualified property must be: …

123-674-3200 Amending the Application/Authorization For purposes of amending an application before or after its approval: (1) To substantively modify the Application, such that it reestablishes what might be exempt as described in OAR 123-674-3100, the Firm/applicant must formall…