Local Option - Rural Renewable Energy Development Zones

Cities, counties, or several contiguous counties in Oregon can set up Rural Renewable Energy Development (RRED) Zones. The zone can only cover territory outside of the urban growth boundary of any large city or metropolitan area. Businesses must meet certain employment and/or investment requirements to be eligible. Commercial renewable energy properties in these zones are eligible for a 3 to 5 year local property tax exemption. Eligible investments include wind, geothermal, solar, biomass, or other unconventional forms of electricity generation, or systems that produce, distribute or store biofuels. Each zone sets a local cap for the total value of property that can qualify for the abatement, up to $250 million in initial market value of each project. Interested businesses must apply for authorization before construction or installation begins.Depending on the zone, businesses may also be eligible for other local property tax incentives. For a current list of designated zones, see the program website listed above. Designated Zones:Clackamas County* Effective January 13, 2022Coos County Effective December 2, 2019Crook County Effective January 1, 2020Deschutes County* Effective January 8, 2015Douglas County Effective January 29, 2020Gilliam County Effective January 20, 2021Jackson County* Effective December 12, 2014Lake County Effective July 1, 2019Linn County* Effective July 1, 2018Malheur County Effective January 1, 2015Polk County* Effective July 1, 2018Sherman County Effective February 28, 2019Wasco County Effective May 6, 2020City of Pilot Rock Effective February 18, 2020*Excluding any area within urban growth boundary (UGB) of a metropolitan region or city with a population of 30,000 or more.