Business Expansion Program (BEP)

Business Expansion Program (BEP)

Program Type: Cash-based incentive program

Overview: 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.

Geographic Scope: Oregon

Funding Mechanism: Business Oregon awards funds according to a binding agreement with a company based on two years (at full operation) of estimated incremental personal income taxes that the state would collect from new employees.

Eligibility Requirements

Company Requirements:

Must plan to hire 50 or more full-time (equivalent) employees in Oregon

Must already have at least 150 employees

Retailers are NOT eligible

Must sell goods or services into markets involving national or international competition ("traded sector" as defined in ORS 285A.010)

Can include corporate headquarters and manufacturing

Wage Requirements:

Annual pay for each of the 50 new employees must equal or exceed:

- 150% of the state or county average wage, whichever is less; OR
- 130% of the state or county average wage, whichever is less, if hired to work in a county outside any federally-designated metropolitan statistical area

Performance Requirements

Binding Agreement Terms:

Company must declare that availability of program funds is an integral factor in its decision to expand/relocate

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 offset by layoffs elsewhere

Company commits to consult with Oregon vendors before contracting to purchase goods or services

Contact

Administering Agency: Business Oregon

Website: https://www.oregon.gov/biz/programs/BEP/Pages/default.aspx