OAR 123-680-1600: Further Distinctions from an Enterprise Zone Exemption

For an RREDZ exemption, in comparison with a business firms’ using an enterprise zone: (1) The application for authorization shall give special attention to characterizing the proposed investment in qualified property, clarifying how it relates to renewable energy, and estimating its real market value by January 1 of the first full calendar year of operations (2) In order to qualify and be exempt, the property of the firm must effectively and substantively correspond to the description in the application, equivalent to OAR 123-674-1700(2). (3) For purposes of a business firm’s receiving authorization and then qualifying: (a) An “eligible business firm” under ORS 285C.135 relates only to such operations or business activities that are engaged in renewable energy. (b) The “employment of the firm” under ORS 285C.200 and 285C.210: (A) Relates only to employees engaged a majority of their time in eligible renewable energy operations within the RREDZ. (B) Satisfies requirements for the addition of one or more employees respective to the existing number of employees, who work throughout the entire city, county or counties, as applicable. (4) The exemption is essentially the same as that under ORS 285C.175, once property has been placed in service. There is, however, no special exemption during construction like under ORS 285C.170, although the exemption under ORS 307.330 may be used as otherwise permissible. (5) For purposes of an additional one or two years of exemption (following the basic three-year period) on qualified property to be located inside a county that is part of a multi-county RREDZ but not its sponsor: (a) At least 21 calendar days before execution of the requisite written agreement between the sponsor and the eligible business firm, which may contain additional local requirements that the business firm would need to satisfy, the sponsor shall give the county’s governing body formal notice of the potential extension to the tax abatement period; and (b) If before the date, on which the firm and sponsor would execute the written agreement, the county’s governing body adopts a resolution electing not to participate, then there shall be no extended abatement for the proposed investment in qualified property in that county. (6) For purposes of a local waiver of requirements for increasing the employment of the firm inside the zone: (a) Only the sponsoring county of a multi-county RREDZ needs to adopt the requisite resolution by the time of authorization, regardless of the proposed location of qualified property; (b) Provisions under ORS 285C.155 and 285C.200(2) otherwise pertain to RREDZs, including as described in OAR 123-674-4300; and (c) Another type of waiver unique to RREDZs is allowed under ORS 285C.362(2), if the total investment in qualified property pursuant to the application equals or exceeds $5 million, but in this case the sponsor resolution shall not establish: (A) An alternative minimum employment level, but rather it simply waives any such requirement; or (B) Other conditions to be imposed on the business firm.