Washington County
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Strategic Investment Program Overview

Find information about Oregon's Strategic Investment Program and agreements within Washington County.

The Strategic Investment Program (SIP) is an economic development tool created by the State of Oregon that allows a County to create 15-year strategic property tax abatement agreements when businesses make large investments within their community. State law sets minimum levels of investment for urban and rural areas, along with the reporting requirements to qualify for the program.

The purpose of this program is to attract and keep employers that provide high-wage jobs in Oregon and make large investments in property that represent long-term commitments to the area.

Washington County has established policy objectives that guide when the County will enter into a SIP agreement. These objectives were updated in 2024 to reflect the County’s current expectations for what makes up a beneficial agreement. The County prioritizes SIP agreements that support job creation or retention and that generate broader economic benefits beyond a single investment.

Since 1993, Washington County’s SIP agreements have brought in over $50 billion in investment and helped retain and create over 19,000 local jobs.

The economic ripple effect provides long-term property tax funding for local governments and education providers. During the abatement period, they also generate significant state income tax revenue that supports essential state services, including funding that can be directed back into schools.

Current SIP Agreements

Find details about existing SIP agreements between Washington County, Cities and businesses.

FAQs

  • Established by the state legislature in 1993, the Strategic Investment Program (SIP) is an economic development tool that allows businesses and local governments to develop terms for alternative property tax agreements.
  • Used as an incentive to attract and retain companies, the SIP allows qualified businesses to enter into alternative tax agreements for up to 15 years, which in turn creates and/or maintains high-wage jobs and positive economic benefits in our community.
  • It’s important to know that projects approved for the SIP must pay full property taxes on an initial portion of newly assessed property - set in state law – and that minimum assessed value threshold increases annually over the life of the agreement.
  • An annual Community Service Fee equal to 25 percent of abated taxes, up to an annual maximum of $3 million as adjusted annually for inflation, is also required.
  • The County, and the city where an investment occurs, can also require additional fees as part of the agreement.

  • A SIP application begins with a contact between the business and the County to negotiate an agreement. If the SIP project is located inside a city, the city also needs to be included in that agreement.
  • The County works with an independent firm to conduct an economic impact analysis and considers the report's findings during the negotiation process.
  • The County must hold a public hearing before executing the agreement.
  • Before a proposal under the Strategic Investment Program can take effect, state law requires that a majority of the Board of County Commissioners and any involved City Council approve the agreement.
  • Finally, the contract must also be approved by the Oregon Business Development Commission.

  • SIP Agreements have helped communities across Oregon bring in large businesses and high-paying jobs. In Washington County alone, these agreements have supported over $50 billion in investment and created or retained over 19,000 jobs since 1993.
  • This kind of economic ripple effect goes on to generate increased state income taxes and local property taxes that support public services across Oregon.
  • In Washington County, we also consider the types of jobs and the investments in opportunities that the firm will make before we agree to a SIP agreement.

  • No. Without a SIP agreement, large companies would be unlikely to choose this community for major investments, meaning there would be no new investment and no new revenue at all.
  • SIP agreements help make the community competitive, so companies are willing to build facilities, expand operations and create jobs here.
  • Under a SIP agreement, a company still pays property taxes on new property values. The company also pays additional fees that support service districts. New income that is generate also creates taxes for the state that support the school fund.
  • This steady investment helps maintain funding for city and county services and also supports schools.
  • The size of the investments made to qualify for a SIP are also an indication of long-term investment by the business in Washington County, so after the abatement the tax base continues to benefit from the investment.

  • The main goal of a SIP is to support new investments that will grow tax revenue over time. These tax dollars help pay for County services like roads, public health, and public safety; city and district services like water and sewer, fire protection, and parks, and; schools and other education services.
  • SIP agreements encourage local hiring. Businesses are required to:
  • Sign a first-source hiring agreement with the local WorkSource Oregon office;
  • Hold a job fair by announcement through Worksource Oregon
  • Report on their payroll and hiring changes for every year of the SIP tax payment.
  • SIP agreements have additional community benefits. By law, every SIP agreement must include a Community Service Fee. This fee allows local governments to receive part of the tax benefits from SIP projects and supports the overall program evaluation.

  • Both the SIP and Enterprise Zone program are defined by statute, but the SIP creates an opportunity for project-by-project decisions by the County.
  • The Strategic Investment Program (SIP) is designed for very large, capital-intensive projects and provides a long, 15-year alternative tax agreement. Enterprise zones are meant for smaller local investments and offer property tax abatement on new equipment and buildings for 3-5 years.
  • SIP agreements involve individualized, negotiated terms – like additional payments or investments in community – with counties, cities and the state, while Enterprise Zones are managed locally, by cities, with a simpler, non-negotiated process.
  • In general, SIP supports major high-value projects and Enterprise Zones support smaller business investments over different time periods.