Oregon fast tracks permits for some large development projects

The Joint Permitting Council administers a fast track program for eligible projects. Projects must exceed $100 million in investment inside a metropolitan service district's urban growth boundary, $50 million outside that boundary and outside a nonurban county, or $25 million in a nonurban county. They must show land use compatibility and cannot need permit renewals. Projects need more than one state regulatory approval, must meet the council's readiness and other criteria, and must support job creation or economic growth in a target industry cluster. The Governor decides whether to approve each application and cannot approve one when 15 projects are already in progress. The council must set eligibility criteria by October 1, 2026. For approved projects, its plan must set deadlines shorter than existing permitting timelines.

Covered agencies publish permit catalogs and report on permit processing to the Governor. The duties cover the transportation, land use, energy, state lands, environmental quality, water, and agriculture agencies, plus the State Historic Preservation Officer. They apply to permits related to or affecting economic development projects. Catalogs must describe covered permits, fees, timelines, incomplete and pending applications, backlogs, and ways to streamline processing. Reports must cover slow permit programs, ways to improve processing, applicant feedback, and possible fee relief. Agencies must publish catalogs and send reports within 120 days after the law takes effect. These duties end January 2, 2027.

Enterprise zone sponsors and businesses may use the stated local need and business eligibility rules when seeking zone benefits. These rules concern enterprise zone sponsors and businesses seeking zone designation, business eligibility, or property tax exemptions. Economic need may be shown through factors such as industry change, underused industrial land, or local development plans. Businesses in sponsor-designated priority industries may qualify; some otherwise ineligible activities may qualify at a separate location or with department approval of a sponsor's written request. A business and sponsor may agree to extend an exemption beyond three years. The usual maximum is two extra years; a longer term of up to 10 years requires a sponsoring jurisdiction's request and department rules. Data center property cannot receive an extension, and flexible hiring agreements do not apply to data centers. An exemption extension agreement must be signed by the date the business is authorized and must state the extension period.

A taxpayer whose primary business is in a qualified industry may claim a tax credit for qualifying new jobs if Senate Bill 1507 becomes law. Qualified industries include advanced manufacturing, bioscience and biotechnology, clean technology, food and beverage processing, forestry and wood products, high technology, and outdoor gear and apparel. The taxpayer needs written certification from the Oregon Business Development Department. Each counted job must pay at least 150 percent of the applicable minimum wage. The credit is $1,000 per net new job, up to 10 jobs per tax year, and cannot exceed the taxpayer's tax bill. Unused amounts may carry forward for up to three succeeding tax years. Unused credits may carry forward for up to three succeeding tax years.