Local Option - Rural Renewable Energy Development Zones
Administered by The Oregon Business Development Commission
Rural commercial renewable energy projects located outside urban growth boundaries in designated Oregon zones can qualify for a 3 to 5 year local property tax exemption, though businesses must meet local employment and investment requirements and apply before construction begins. Contact your county or city planning department to determine if your location falls within a RRED Zone and review the specific eligibility criteria set by your zone.
Help your commercial renewable energy customers understand that RRED Zone designations offer significant property tax savings for projects involving wind, solar, geothermal, biomass, or biofuel systems—but applications must be submitted before any construction or installation begins. Each zone sets its own local cap (up to $250 million per project in initial market value) and may have additional local incentives; verify the customer's location and all local requirements early in the sales process.
RRED Zones are locally established in designated rural areas outside metropolitan urban growth boundaries, offering 3 to 5 year property tax exemptions for commercial renewable energy infrastructure. Thirteen counties and one city have active zones as of the dates listed; each zone administers its own application process, sets local property value caps, and may layer additional property tax incentives. Applicants must demonstrate employment and/or investment thresholds and must apply before construction begins.
Program details
- Program ID
- 5416
- Last updated
- 10/8/2025
Eligibility
- Sectors
- commercial
- Technologies
- geothermal electric solar photovoltaics wind (all) biomass
Program summary
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, 2022
- Coos County Effective December 2, 2019
- Crook County Effective January 1, 2020
- Deschutes County* Effective January 8, 2015
- Douglas County Effective January 29, 2020
- Gilliam County Effective January 20, 2021
- Jackson County* Effective December 12, 2014
- Lake County Effective July 1, 2019
- Linn County* Effective July 1, 2018
- Malheur County Effective January 1, 2015
- Polk County* Effective July 1, 2018
- Sherman County Effective February 28, 2019
- Wasco County Effective May 6, 2020
- City 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.
Contact & resources
- Contact email
- arthur.fish@biz.oregon.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
