Thursday, Mar 17 2011 9:19AM
Oregon lawmakers have proposed a plan that would offer performance-based incentives for businesses that relocate to rural areas of the state.
The Oregon senate is reviewing a proposal that would offer performance-based incentives for businesses that relocate to rural or distressed areas of the state, reported the Portland Business Journal.
The legislation, known as the Oregon Business Retention and Expansion Program, would provide forgivable loans to companies with at least 150 employees who earn a salary of about $60,000 or 150 percent of local residents' average pay. The plan also requires that companies hire at least 50 new employees from Oregon.
The exact amount of forgivable loans to be distributed has not been determined, reported the source. However, the money would be taken from Oregon's general fund.
Senator Richard Devlin, one of the bill's sponsors, told the source the business incentives are based on increases in new personal income tax revenue that is connected to new hires.
"It's an incentive program that's based on performance," Devlin said. "It requires them to perform at a certain level in terms of employees and income levels. It's the tightest connection between income and performance that's been put forward in the state."
At 10.4 percent, the state has one of the higher unemployment rates in the country. Rural areas in particularly are in need of
economic community development, with Crook County having an unemployment rate of more than 19 percent last year.