Business Expansion Program
The Oregon Business Expansion Program (BEP) is a cash-based incentive program based on the estimated increase in income tax revenue as a result of new hires from the expansion or relocation of a project. Funding is available to existing companies expanding operations in Oregon or new companies coming into the state.
Business Oregon awards funds according to a binding agreement with a company. A company must declare that the availability of program funds is an integral factor in its decision to meet the eligibility requirements as noted below.
An agreement contains detailed performance measures, including that:
- A company repays funds proportional with its failure to meet and maintain employment and compensation targets over at least two years;
- Hiring results in additional payroll in Oregon that is not, for example, offset by layoffs elsewhere;
- A company commits to consult with Oregon vendors before contracting to purchase goods or services; and
- An award is based on two years (at full operation) of estimated incremental personal income taxes that the state would collect from new employees at the above pay scale.
Who is Eligible?
To be eligible for the program:
- A company must plan to hire 50 or more full-time (equivalent) employees in Oregon and already has at least 150 employees; and
- The annual pay for each of the 50 new employees must equal or exceed:
- 150 percent of the state or county average wage, whichever is less; or
- 130 percent of the state or county average wage, whichever is less, if hired to work in a county outside any federally-designated metropolitan statistical area.
Retailers are not eligible. The company must otherwise sell goods or services into markets involving national or international competition, known as "traded sector" (as defined in ORS 285A.010?), and can include corporate headquarters and manufacturing.
Category: Oregon, Business, State
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