Portland expands $25M business tax credit to revitalize central city

PORTLAND, Ore. (KOIN) – Portland City Council unanimously approved an expansion of a business tax incentive on Wednesday in an effort to revitalize the central city and encourage businesses to lease retail and office space.

The Downtown Business Incentive Credit program, which was passed in 2023, previously limited eligibility to sub-districts that took the biggest hit from the COVID-19 pandemic.

The expansion, which was introduced by Mayor Ted Wheeler and Commissioner Carmen Rubio, now includes the entire central city.

ODOT to close major Portland-Beaverton connection for nine months

“Our central city continues to economically recover from the major disruptions caused by the pandemic, from public safety and livability challenges, and from the prevalence of hybrid and remote work models of many employers,” Commissioner Rubio said in Wednesday’s press release.

“This innovative program has already shown success, so today’s expansion is a smart move to keep delivering investment, employment, foot traffic, and vibrancy throughout our urban core,” she continued.

Eligible businesses must enter a new or extended lease period for at least four years and have in-office workers on at least a half-time basis. Additionally, eligible businesses must have at least 15 employees.

‘Incredibly unfair’: Portland Vietnamese restaurant Pho Gabo closes due to smell complaints

The program allows eligible businesses a credit for the full amount of business license tax owed in one year up to $250,000 per taxpayer in total benefit taken over four years, officials said.

The overall program is capped at $25 million.

“We must consider every option to continue to recover positive foot traffic, economic activity, cultural vibrancy, and revitalization in the central city,” Mayor Wheeler said. “This is just the latest initiative as part of a multipronged plan that includes public safety initiatives, outreach work to house and deliver services to those in need, improvements to public rights-of-way and cleaning activities in public spaces, and investments in events and public activations that connect people from all across the city and beyond.”

The program has received 61 applications, with 17 being approved, as of the week of Feb. 19, officials said.

For the latest news, weather, sports, and streaming video, head to KOIN.com.