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, 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.