For purposes of establishing a business firm’s eligibility under ORS 285C.135(1) in an enterprise zone:

1. (1) The Firm/applicant (when qualified) must:

   1. (a) Be a business firm under ORS 285C.050 consistent with OAR 123-674-1000(3); and
   2. (b) Be engaged in or proposing to engage in business, within the enterprise zone, of providing goods, products or services to other businesses or other organizations, through eligible activities; or
   3. (c) Be engaged in or proposing to engage in an industry sector identified by resolution of the governing body of the zone sponsor as a priority industry under a local or regional economic development strategy; or
   4. (d) Be engaged in an activity described in ORS 285C.135(2) and have received an approved waiver from the Department pursuant to ORS 285C.135(3)(b) to conduct that business activity; or
   5. (e) Be engaged in an activity described in ORS 285C.135(2) and such activity is an allowed activity within a pilot program authorized by the Department pursuant to ORS 285C.135(3)(b).

2. (2) A business firm’s relevant operations will indicate such eligibility if they are:

   1. (a) Performed for internal purposes of the firm;
   2. (b) Reimbursed through sales to another business firm;
   3. (c) Equivalent to what is done for other business firms, even if the actual customer is a government agency, a public corporation or nonprofit organization; or
   4. (d) Undertaken to create or add value to goods, products or services for ultimate exchange with persons or entities residing beyond the local economy.

3. (3) As used in this rule, “eligible activities” under (1)(b) include but are not limited to:

   1. (a) Manufacturing, assembly, fabrication, processing, shipping or storage, in an industrial sense;
   2. (b) Processes or services such as cleaning, coating, curing, kiting, labeling, laminating, packaging, refining, smelting, sorting or treating for production of goods, inputs and so forth;
   3. (c) Generation or co-generation of electricity, steam or heat;
   4. (d) Recycling of post-consumer or post-production materials or wastes;
   5. (e) Nonretail, in-shop refurbishment or restoration of equipment or machinery;
   6. (f) Maintenance service or repair work on vehicles, products, parts or devices, performed on a nonretail (e.g., contract) basis at a permanent location, facility or shop, including but not limited to warranty service contracted or paid for by the manufacturer;
   7. (g) Technical/customer support performed for internal purposes of the firm, or contracted or paid for by a nonretail third party such as a product’s distributor or manufacturer;
   8. (h) Standardized product testing, quality control or laboratory work, including but not limited to services provided to healthcare businesses or organizations that themselves treat patients;
   9. (i)Bulk clerical processing or data center operation for internal or external business services;
   10. (j) Development of standardized computer software products or customized products for business users;
   11. (k) Printing or mass document production;
   12. (l) General production of molds, forms, models, prototypes or similar items for other businesses that does not, in and of itself, merely fulfill an architectural, design or similarly advanced professional service;
   13. (m) Distribution, including shipping, storage and warehouse functions that entail deliveries generally beyond the local area or enterprise zone region, to recipients who are variously businesses, organizations, or households for which the delivery is not a direct consequence of a retail purchase—i.e., not a fulfillment center;
   14. (n) Wholesaling, which may include complex transactions for single-item purchases by other businesses of large equipment involving contracts, factory-ordered specifications or other attributes distinguishing the sale from normal retail;
   15. (o) Production of agricultural, mineral, timber or other primary goods or commodities; or
   16. (p) Similar types of business operations.
4. (4) As used in this rule, priority industry sector means a segment of the economy comprising various related industries, business firms, and business activities that share similar characteristics recognized for its substantial contributions to employment, investment, or overall economic output, as well as its potential for future growth or strategic importance.
5. (5) A business firm that is part of a priority industry sector, nonetheless, does not qualify as an eligible business firm under ORS 285C.135(1)(b) if the business firm is engaged in a business activity described in ORS 285C.135(2). To qualify under ORS 285C.135(1)(b), the business firm must be engaged in a business activity that (a) is not otherwise eligible under 285C.135(1)(a); (b) is not a business activity described in ORS 285C.135(2); and (c) is within a priority industry sector identified by resolution of the governing body of the zone sponsor under a local or regional economic development strategy.

Statutory/Other Authority

ORS 285A.075 & ORS 285C.060(1)

Statutes/Other Implemented

ORS 285C.135

History

OBDD 10-2026, temporary amend filed 06/05/2026, effective 06/05/2026 through 12/01/2026
OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024
OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017
OBDD 14-2016, f. & cert. ef. 9-16-16
OBDD 27-2010, f. & cert. ef. 6-14-10