Economic Development Decisions since 2003

October 12, 2016  |   Posted by :   |   Homepage Feature   |   0 Comment»

It would be valuable to determine the total cost of Oregon’s “budget” for economic development, through both tax code and program expenditures. We have not attempted that.

This list identifies tax code expenditures and programs added since 2003 and decisions made before 2003 if big expansions were made since 2003. Thus, this compilation doesn’t include enterprise zones or Strategic Investment Programs (SIPs), Oregon Investment Advantage, Research and Development tax credits or the vast majority of program and tax benefits for agriculture and forestry, transportation program areas, or Business Oregon’s budget. We’ve excluded programs with costs below $.5 m this biennium (unless cost is expected to grow massively over time). Items in blue are property tax changes; these impact both local jurisdictions and the school funding formula.

2003 COST IN 15-17
  • Film and Video Tax Credit: to induce film production in Oregon, expanded in 2011, 2013; HB 1507 in 2016 increased to $14m/yr. Added $200 per diem for rural filming in 2015
$24.0 m
  • Renewable Energy Development Zones to benefit firms involved in production of biofuels or electricity from renewable energy resources in rural communities TER
$3.0 m
2005
  • Film Production Labor Rebate: returns to industry the employee income taxes for productions made in Oregon.
$0.6 m
  • ConnectOregon: this Multimodal Transportation Fund provides grants for air, marine, rail, and public transit infrastructure improvements. Grants to private businesses have grown from 29% to 45% of grants. Bond commitment
$45.0 m
  • Single Sales Factor: Eliminates income taxes for businesses with few sales in Oregon, shifts tax burden.
>$165.9 m
  • Public University Venture Development Fund Tax Credit provides a tax credit for 60% of value of a donation to this fund supporting commercialization of research, extended 2016
$1.2 m
  • Food equipment property tax exemption. Additional equipment added in 2007, 2015, 2016. Now includes food processing, egg, dairy, grain, and bakery machinery
$3.4 m
 2007
  • Oregon Innovation Council (Oregon InC) initiated. Programs added over time. Now funding signature research centers, and R&D testing labs, including ONAMI, OTRADI, OWET, UASCE (Drones), Oregon BEST, PIE, Drive Oregon, & SOAR Oregon.
$17.9 m
  • BETC and RETCexpanded significantly to build a new renewable energy cluster, create jobs, and to lead the nation in renewable energy effort. Changes since nearly annually. Includes: Biomass, Alternative Energy Devises, Renewable Energy Development Contributions, Energy Conservation Projects, Business Energy Facilities, Conservation and Renewables, and Renewable Equipment Manufacturing. Current costs minus the $2.4 m cost before the big 2007 expansion
$232.1 m
  • GainShare enacted to make up for forgone property taxes under the Strategic Investment Programs. Returns to local jurisdictions 50% of employees’ Personal Income Taxes of employees of SIP Businesses – Intel, Genentech, Georgia Pacific and wind farms. Capped in 2015.
$32.7 m
 2011
  • Oregon Business Retention and Expansion Program (OBREP) enacted to affect business location decisions. Returns to employers the employees’ PIT for two years if a large business expands or moves 50+ jobs to Oregon. Given to SalesForce, Oracle, Garmin, Daimler, etc.
$11.7 m
  • Qualified Low Income Community Investments/New Market Tax Credits: provides tax credits for up to 39% of project costs for investments in low income communities.
$ 27.3 m
 2013
  • Innovation Infrastructure: Oregon RAIN, Oregon Metals Initiative, Oregon Research Collaboratory
$3.3 m
  • Reduced income tax rates for business owners, Short Session HB 3601 Reduced rates for pass through income
$205.0 m
  • Dividend Income from IC-DISC – tax reduction to encourage export activity
$10.0 m
  • Regional Solutions & West Cost Jobs built environments: funding for the programs which were begun by executive order. Regional Solutions staff and capital expenditures
$17.1 m
  • Oregon Growth Board and Fund: invest in new business startups. Creates account for seed money investing using GF money, state gets equity, includes one staff position
$.5 m
  • Industrial Site Readiness: to increase the supply of shove-ready industrial land. Sends to local communities 50% of traded-sector employees’ personal income taxes (PIT) to reimburse locals for getting industrial land shove-ready. Limited to $10 m per year. Most funding will occur after infrastructure is completed, with return of PIT. Includes one staff position
$ .2 m
  • Water for Irrigation, Streams and Economy/WISE
$1.8 m
  • 20% Recycled Cooking Oil added to diesel, collect no gas tax
$1.2 m
2014
  • Interstate broadcasting tax change basis of apportionment change
$1.7 m
  • Tax credit to farmers for donating crops
$0.9 m
  • NW Center for Sustainable Manufacturing (NWCSM) research funding
$2.5 m
2015
  • Comcast/Google bill revises property tax structure for communications companies
$7.8 m
  • Main Street Grant Project revitalizing main street businesses
$2.5 m
  • Western Juniper Industry Fund supporting harvest and related manufacturing
$1.0 m
 2016
  • Rural Industrial Improvements gives rural local jurisdictions option of exempting new industrial improvements from property taxes for up to five years.
cost unknown
  • PCC Research Center for Advanced Manufacturing program set for Columbia County
$7.5 m
  • Brownfields Redevelopment Fund capitalized,
$7.0 m
and local jurisdictions can give property tax reductions cost unknown
  • Solar Incentive Program for commercial scale businesses
$1.0 m
Total $835.8 m

Cost sources: Tax Expenditure Report, 2015-2017, Legislative Revenue Office bill summaries, Legislatively Adopted Budget from the 2015 session and other sources within the Legislative Fiscal Office.

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