"Kotek said last week that HB 4084 is "not about data centers" and is instead aimed at supporting small manufacturers, but until Monday it contained no provision to prevent companies running data centers in the state-including Amazon, Meta, Apple, and Google-from benefitting. Last year, data centers received two-thirds of the program's tax incentives."
"extending what could be hundreds of millions of dollars of tax breaks to data centers has proved controversial-so much so that, on Monday, a budget subcommittee added a provision to the bill blocking new data center projects from eligibility for the tax breaks until the summer of 2027."
"Given how many data centers already exist in Oregon and how favorable the current tax climate is for them, Kotek's support for a bill that could have doled out hundreds of millions of dollars in further tax breaks has rankled budget watchdogs, environmental activists, and local government officials alike."
Governor Tina Kotek proposed HB 4084 to extend Oregon's enterprise zone tax exemption program from five to ten years, claiming it targets small manufacturers. However, the bill would have significantly benefited data centers, which received two-thirds of the program's tax incentives last year. A budget subcommittee intervened Monday by adding a provision blocking new data center projects from eligibility until summer 2027. This decision provides time for legislators to evaluate whether Oregon should subsidize data center construction given environmental and economic concerns. Data centers already operate under favorable tax conditions in Oregon, making additional subsidies controversial among budget watchdogs, environmental activists, and local officials.
Read at Portland Mercury
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