Tax Candi

Time to take a break from the middle of the country and head for the beauty of the Pacific Northwest. If you're in the Midwest, get a taste of Oregon's splendor at the newly remolded Shedd Aquarium exhibit, though it doesn't hold a candle to the real thing.

As if the breath-taking scenery isn't enough, Oregon has an attractive two-pronged Enterprise Zone (EZ) program.

The standard EZ program allows eligible (generally non-retail) businesses relocating to or expanding within an EZ receive a total exemption from the property taxes normally assessed personal property for up to five years. As well, additional EZ may be available through local economic development agencies.   Although EZ benefits are most commonly awarded to industrial-based businesses, other businesses may be eligible based on capital investment and job creation.

However, to entice Silicon Valley to come north (or is it the tech companies surrounding Microsoft to come south?) Oregon created specialized EZs known as the Electronic Commerce Zones (ECZ).

Several of Oregon's enterprise zones have received special status to encourage investment in electronic commerce. ECZ's most significant feature is that qualifying businesses may receive a credit against their annual state income or corporate excise tax liability. The credit equals 25% of that tax year's investment capital investment costs  for operations related to electronic commerce.   ECZ credits are limited to the lesser of $2 million or the state tax liability. This state tax credit is in addition to the standard enterprise zone exemption from local property taxes inside the zone.