Enterprise Zone

General Program Overview

The City of Salem participates in the Oregon Enterprise Zone program as a way to encourage the creation of new industrial and manufacturing jobs for the community.  Qualified firms may obtain a 3-year, 100% property tax exemption on new plan and equipment and a 10% rebate of certain building permit fees.  An extended four- or five-year property tax exemption is available when additional local requirements are met.   Eligible firms must be located within the boundaries of the Enterprise Zone.  Most industrial land in the City, exclusive of the Mill Creek Industrial Park, is located within the boundary of the Salem Enterprise Zone.  The day-to-day management of the Salem Enterprise Zone program is handled by the Strategic Economic Development Corporation  on behalf of the City of Salem.  

Electronic Commerce Incentives

The Salem Enterprise Zone has been designated by the Oregon Economic and Community Development Department as an Electronic Commerce Enterprise Zone.  Electronic Commerce means engaging in commercial or retail transactions predominately over the Internet or a computer network, utilizing the Internet as a platform for transacting business, or facilitating the use of the Internet by other persons for business transactions.  Firms engaged in electronic commerce may receive a state income tax credit against the firm’s annual State of Oregon income or corporate excise tax liability.  The credit is equal to 25% of the firm’s capitalized investment up to $2 million, in operations related to electronic commerce during a given tax year.  The tax credit may be carried-over for a five-year period.  Investments must be made within the boundary of the Enterprise Zone.

Application Process

To receive investment incentives, an eligible business must file an Enterprise Zone Pre-certification Form before it makes an eligible investment and hires new employees.  After the investment is completed and the employees hired, the pre-certified business files its tax exemption application with the County Assessor between January 1 and April 1 of the very next year.  Review of the application is based on the provisions of the Oregon Enterprise Zone Act and Oregon Department of Revenue administrative rules.  Contact the Strategic Economic Development Corporation for more information.

Useful Links

Strategic Economic Development Corporation (SEDCOR)
http://www.sedcor.org

Enterprise Zone Brochure and Map   
http://www.sedcor.org/pages/land_ez.html

Oregon Economic and Community Development Department (Enterprise Zone Page)
http://www.econ.state.or.us/enterthezones/index.htm

Oregon Economic and Community Development Department (Financial Incentives)
http://www.econ.state.or.us/allfinance.htm

Staff Contact

Todd Klocke