Local Option - Rural Renewable Energy Development Zones

October 29, 2024

Summary

Cities, counties, or several contiguous counties in Oregon can set up Rural Renewable Energy Development (RRED) Zones. The zone can only cover territory outside of the urban growth boundary of any large city or metropolitan area. Businesses must meet certain employment and/or investment requirements to be eligible.

Commercial renewable energy properties in these zones are eligible for a 3 to 5 year local property tax exemption. Eligible investments include wind, geothermal, solar, biomass, or other unconventional forms of electricity generation, or systems that produce, distribute or store biofuels. Each zone sets a local cap for the total value of property that can qualify for the abatement, up to $250 million in initial market value of each project. Interested businesses must apply for authorization before construction or installation begins.

Depending on the zone, businesses may also be eligible for other local property tax incentives. For a current list of designated zones, see the program website listed above.

Designated Zones:

Clackamas County* Effective January 13, 2022
Coos County Effective December 2, 2019
Crook County Effective January 1, 2020
Deschutes County* Effective January 8, 2015
Douglas County Effective January 29, 2020
Gilliam County Effective January 20, 2021
Jackson County* Effective December 12, 2014
Lake County Effective July 1, 2019
Linn County* Effective July 1, 2018
Malheur County Effective January 1, 2015
Polk County* Effective July 1, 2018
Sherman County Effective February 28, 2019
Wasco County Effective May 6, 2020
City of Pilot Rock Effective February 18, 2020

*Excluding any area within urban growth boundary (UGB) of a metropolitan region or city with a population of 30,000 or more.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Oregon
Incentive Type:	Property Tax Incentive
Web Site:	https://www.oregon.gov/biz/programs/RuralRenewableEnergyDevelopment%28RRED%29Zone/Pages/default.aspx
Administrator:	The Oregon Business Development Commission
Start Date:
Eligible Renewable/Other Technologies:	Geothermal Electric Solar Photovoltaics Wind (All) Biomass
Incentive Amount:	3-5 year exemption from local property taxes
Maximum Incentive:	The total amount of property among one or more projects that can qualify is subject to a locally-set cap, but is not to exceed $250 million

Authorities

Name:

ORS §285C.350 - .370

Name:	OAR 123-680
Effective Date:	06/14/2010

Contact

Name:	Arthur Fish
Organization:	Business Oregon
Address:	775 Summer Street, NE, Suite 200 Salem OR 97301
Phone:	(971) 707-8097
Email:	arthur.fish@biz.oregon.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.