LOC News
Economic Development Update
HB 2009, which now serves as the likely vehicle for the semiconductor economic development incentives, combines the research and development tax credit originally in SB 5, the enterprise zone changes from HB 2199, and the strategic investment program and gain-share provisions from HB 3457.
The -4 amendment to HB 2009 represents a vast improvement in the direction of these economic development incentives:
Gain-Share
- Maintains the gain-share distribution cap to an individual county at $16 million per year;
Enterprise Zones
- Sunset Extension: Extends the enterprise zone and long-term rural enterprise zone programs until 2032;
- Transparency: changes the 30-day posting notice to a 21-day notice and states that the “terms of the agreement” does not include the company name or any confidential and proprietary information; and
- School Fee: Changes a requirement for companies to pay on the school district portion of the abatement to a negotiable fee.
The -7 amendment school fee portion is altered from a negotiable fee to a formula based on the average weighted student attendance of the local school district.
The LOC remains engaged in the discussion around enterprise zones, chiefly advocating to maintain the value of the incentive and ensure cities can continue to use this tool for economic vitality.
Contact: Lindsay Tenes, Lobbyist – ltenes@orcities.org
Last Updated 6/9/23