Skip to main content

Oregon law offers generous tax breaks to data centers

Oregon law offers generous tax breaks to data centers

/

A new Oregon law that goes into effect on June 4th is set to provide handsome tax breaks to data centers within the state, offering significant savings to Amazon, Google, and other companies that have have already created facilities there.

Share this story

apple data center oregon
apple data center oregon

A new Oregon law that goes into effect on June 4th is set to provide handsome tax breaks to data centers within the state, offering significant savings to Amazon, Google, and other companies that have have already created facilities there. Under the law, Oregon's data centers will be taxed only on their local value, and not on intangible assets such as their national brand value. This exemption would therefore offer major breaks to tech companies with a large national presence, and, as the New York Times speculates, may even encourage Facebook to build a second complex within the state. Governor John Kitzhaber lauded the bill during a ceremonial signing at Facebook's Prineville, Oregon data center on Friday, just hours after the company's momentous IPO.

The law's full impact remains to be seen, though it appears to have already attracted the attention of Apple, which launched operations at its Prineville data center in February, after the bill passed through the state Senate. These incentives likely won't result in major job growth at the state level — Facebook's center only employs about 60 people — but they could have a greater economic impact within the more isolated and rural communities where many companies choose to set up their data operations.