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Oregon’s Solar Advantage

Oregon’s Solar Advantage. The Leading U.S. Solar Manufacturing Location. Why Oregon?. Established top tier U.S. semiconductor State Establish & growing silicon supply chain Established high quality tech work force Low business costs Effective incentives Access to key markets.

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Oregon’s Solar Advantage

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  1. Oregon’s Solar Advantage The Leading U.S. Solar Manufacturing Location

  2. Why Oregon? • Established top tier U.S. semiconductor State • Establish & growing silicon supply chain • Established high quality tech work force • Low business costs • Effective incentives • Access to key markets

  3. Oregon Leads in Green Policy • Oregon is the leading solar energy manufacturing center in the U.S. • Highly competitive solar manufacturing cash incentives • Top 10 in U.S. for renewable energy investment • Portland is America’s Greenest City(Business Journals Index, 2010) • Oregon #2 in Clean Energy Leadership(CleanEdge Report, 2011) • Oregon is #4 for LEED building space per capita(USGBC, 2011) • Oregon is #4 for wind energy capacity either online or under construction(AWEA, 2011)

  4. Oregon Leads in Solar Manufacturing

  5. Oregon’s Solar Industry:Largest & Fastest Growing in the U.S.

  6. OregonSolar Supply Chain

  7. Effective Incentives$200 Million/2 YearsIncentives for Solar Manufacturing • Oregon’s Business Energy Tax Credit (BETC) delivers cash and or tax credits to manufacturing companies • Most companies qualify for continuing awards • Strong incentive support to primary company and suppliers • Subject to application, approval and performance contract • Tax abatement and other incentives available

  8. Tax Exemption Programs • Property tax exemptions: • Strategic Investment Program (SIP) for big facilities, 15-year partial exemption • Enterprise Zone, 100% exempt: • Three years, for eligible firms adding full-time jobs • With zone sponsor agreement, 1–2 extra years • Income tax exemptions: • Oregon Investment Advantage • 10-year exemption/deduction of taxable income attributed to facility • Locate in one of 16 eligible Oregon counties

  9. Enterprise Zone (E-Zone)Property tax abatement program • New, qualified plant & equipment 100% exempt from taxation • Three years automatic with hiring requirements and potential urban zone additional conditions • Extra one or two years (years 4 & 5) based on written agreement with local zone sponsor • Future use for subsequent phases or projects • Exemption periods apply to each year’s newly operational property over 3 years per authorization • Future authorizations with 10% employment increases

  10. Oregon Investment Advantage • State income tax “holiday” • 10-year exemption/deduction of taxable income attributed to facility • Inside eligible county – one of 16: • On any industrially zoned land, or • For any type of business in small city (urban growth boundary) • Requires: • Operations to be new/unique to that firm in Oregon (distinction for same company or between subsidiaries) • Five or more full-time, year-round hires • Not competing with existing businesses in relation to local resources or sales Business Development Incentives

  11. Loans to Qualified Companies • Small Scale Energy Loan Program (SELP) • Loans backed by state tax-exempt general obligation bonds; adequate security required. • Interest rate based on bond issue rate, typically 6-7%. • Loan terms are flexible, from 5 to 20 years, loan size as large as $20 million. • Loans for energy efficiency, renewable energy production, and renewable energy manufacturing. • Can include most capital costs e.g. design, engineering, land, building and equipment costs. • Fess and interest pay program costs. • Can be used with state BETC and federal incentives.

  12. Skilled & Available Workforce • Long-established semiconductor industry • Over 50,000 workers in Oregon trained in the semiconductor and related supply chain • Experienced workforce for PV manufacturing • Young & Educated Workforce: Percentage of 18-34 year olds is 39% above U.S. average • Solar-specific programs at Community Colleges and Universities

  13. Oregon Has Low State and Local Business Taxes • Oregon has the lowest effective business tax rate in the U.S. (Ernst & Young COST Study, 2010) • Local property taxes, 1–2% of assessed value • Inventories and vehicles excluded • Exemption Programs • No sales tax, no inventory tax • Single Sales Factor tax structure

  14. Oregon Business ClimateLowest Total Effective Business Tax RateOregon is tied for The Lowest in the U.S. at 3.5%…Also Ranked #2 Most Competitive State forNew Investment…Single Sales Factor business tax, and NO sales tax Ernst & Young / Center on State Taxation

  15. Low Electrical Power Cost • Average industrial rates are about half that of California’s (U.S. Department of Energy, 2010)

  16. Advanced Inter-Modal Connectivity Port of Portland, Oregon

  17. Portland Truck Delivery Schedule Next Day Second Day Third Day

  18. Port of PortlandWest Coast Flight Hub • About 13 million passengers per year • 200,000 tons of air cargo per year • 20 carriers • 14 passenger carriers • 6 all-cargo carriers, including nonstop to Seoul • About 216 passenger flights daily • Nonstop flights to Asia, Europe & Canada • Tokyo, Amsterdam; • Calgary, Toronto, Vancouver. • General aviation airports in Hillsboro, Troutdale and Salem, Oregon

  19. Delta Non-Stop Service:Tokyo-Portland-Amsterdam

  20. For more information on whyOregon makes solar sense Mr. Bruce A. Laird Clean Technology Recruitment Officer Business Oregon Bruce.a.laird@state.or.us www.oregon4biz.com

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