Business Expansion Program (BEP)

Program Type: Cash-based incentive 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.

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