LOC News
LOC Supports Semiconductor Incentive Package
SB 1084 A passed out of the Senate Committee on Finance and Revenue with a “Do Pass” recommendation this week and now sits in the Joint Committee on Tax Expenditures.
The LOC is supporting this measure, which originally came out of the Semiconductor Task Force recommendations. The bill contains a research and development (R&D) tax credit, an enterprise zone program extension, a gain-share program extension, and a Regionally Significant Industrial Site (RSIS) extension. The R&D tax credit ended up in SB 5, and the RSIS is in HB 2258, leaving enterprise zones and gain-share as the critical pieces of SB 1084. Since the bill came out of the Semiconductor Task Force recommendations, R&D and RSIS have also remained in the bill until there is clarity on where SB 5 and HB 2258 will land.
The -1 amendment to SB 1084 has some reasonable policy changes that local government economic development partners have agreed to:
Enterprise Zones
- Excludes retail fulfillment centers from eligibility for enterprise zone agreements:
- Does not exclude warehouses that are ancillary to manufacturing operations.
- Transparency report by Business Oregon and LRO:
- Report will study transparency of the agreements, any differences between requirements and statute and practice, and differences in transparency between the various enterprise zones.
SIP/Gain-Share
- Raises the cap on the community service from $2.5 M to $3.5 M in a year and adjusts the cap to inflation;
- Raises the cap on a gain-share distributions to a single county to $20 M and adjusts to inflation yearly; and
- Increases the taxable portion of property value:
- [$50] $75 million for a project with a total cost of more than $500 million and not more than $1 billion; and
- [$100] $150 million for a project with a total cost of more than $1 billion.
Regionally Significant Industrial Sites (RSIS)
- Removes the $10 million cap.
Contact: Lindsay Tenes, Lobbyist – ltenes@orcities.org
Last Updated 5/26/23