Tax Incentive Evaluation Law: Oregon

Fact Sheet January 21, 2015 Read time:

Projects: Economic Development

This page is no longer being updated. As of June 15, 2017, newer tax incentive evaluation fact sheets are available here.

To ensure that economic development tax incentives are achieving their goals effectively, many states have approved laws requiring regular, rigorous, independent evaluations of these programs. For a list of states that have passed evaluation laws since the start of 2012, click here.

Oregon

H.B. 2002, enacted July 29, 2013

What it does

Strengthens evaluation standards
Tax incentive evaluations are standardized, with nonpartisan legislative staff responsible for each study. The reviews must include the purpose, beneficiaries, and effectiveness of the incentive.
Coordinates reviews with sunset dates
Evaluations are scheduled for completion before expiration dates. Policymakers have useful, up-to-date information to help them decide whether to extend or alter an incentive or let it expire.

Strengthens evaluation standards

Tax incentive evaluations are standardized, with nonpartisan legislative staff responsible for each study.

The reviews must include the purpose, beneficiaries, and effectiveness of the incentive.

Coordinates reviews with sunset dates

Evaluations are scheduled for completion before expiration dates.

Policymakers have useful, up-to-date information to help them decide whether to extend or alter an incentive or let it expire.

Excerpt from Oregon’s law: Evaluations are timed to give legislators information before credits expire

Prior to the beginning of each odd-numbered year regular session, the Legislative Revenue Officer shall submit a report addressing each income or excise tax credit that is scheduled to expire during the next even-numbered year. The Legislative Revenue Officer shall submit the report to a committee of the Legislative Assembly related to revenue, and may include information related to other tax credits in the report at the direction of an interim committee related to revenue. In preparing the report, the Legislative Revenue Officer shall seek input from the Department of Revenue, the Legislative Fiscal Officer and state agencies involved in administering any given credit.