Construction is underway near the city’s urban growth boundary in Hillsborough on February 27, 2023. The city of Hillsborough is seeking state approval to allow the semiconductor industry to build outside the city’s growth boundaries. (Photo by Jordan Gale/Oregon Capital Chronicle)
Senate Bill 1586 It turns out that even in today’s highly partisan political climate, lawmakers from both major parties sometimes support good policies. At a time when Oregon’s economy is struggling and good jobs are becoming increasingly scarce, this bill will help provide support for targeted industries and land businesses that Oregon needs to grow.
It makes perfect sense that 36 lawmakers, or 40 percent of the Legislature, have signed on as sponsors, including Democrats like Sen. Janeen Sollman, D-Hillsboro, and Republicans like Sen. Bruce Starr, D-Dundee. It deserves the support of 54 colleagues.
SB 1586, known as the Jobs, Opportunity, Build-Ready Sites (JOBS) Act, would make a few important changes to tax and land use policies. It would expand eligibility for state research and development tax credits for clean technology and life sciences companies, as well as advanced manufacturing and semiconductor production companies. It would provide locally selected property tax breaks for new machinery and equipment in advanced manufacturing. It would bring land into Hillsborough’s urban growth boundary for advanced manufacturing and semiconductor development. This land was identified as Oregon chip laws It will be approved by the Legislature in 2023.
Policies that affect taxes and land use can be controversial, especially in Oregon. But it’s worth remembering something.
First, R&D tax credits and equipment property tax breaks are tools used by states across the country to encourage innovation and job creation. Such targeted incentives tend to be particularly meaningful in states with difficult tax environments. Few states have a tax climate more hostile to innovation and job creation than Oregon. in its National Tax Competitiveness Index 2026The nonpartisan Tax Foundation ranks Oregon’s corporate tax structure as the second-worst in the nation.
Second, Oregon’s chronic lack of available industrial land makes it difficult for companies to expand even in industries such as advanced manufacturing and semiconductor production where the state excels. Instead of leveraging its strengths to provide good-paying jobs and generate tax revenue, Oregon is pushing successful businesses to invest elsewhere.
