Opportunity Zones & Tax Incentives in Central Oregon: What Investors Need to Know

Greg Powell
Aug 10
3 min read

If you’re looking to invest in Central Oregon real estate or development, you might be wondering if there are still tax-friendly areas worth targeting. The short answer? Yes. Between federally designated Opportunity Zones, state-level programs, and local incentives, there are still powerful ways to maximize your returns while supporting the region’s growth.

What Is an Opportunity Zone?

Opportunity Zones are federally designated census tracts where new investments can receive significant tax benefits. Created to encourage development in economically challenged areas, they offer:

Capital gains deferral until you sell the new investment or December 31, 2026 (whichever comes first).
Reduction of taxable gains depending on how long you hold the investment.
Potential tax-free growth if the investment is held for at least 10 years.

Where Are Central Oregon’s Opportunity Zones?

In Bend, three active census tracts qualify:

Tract 15 – Covers parts of the Old Mill area.
Tract 16 – Includes sections of Bend’s Central Business District.
Tract 18 – Located in East Bend.

These zones remain attractive for developers, mixed-use projects, and long-term real estate investors looking to combine strong market fundamentals with substantial tax savings.

Other Incentives for Central Oregon Investors

While Opportunity Zones are the headline program, Central Oregon offers several other incentives that can be just as valuable—especially for business owners, developers, and renewable energy projects.

Enterprise Zones

Available in parts of Deschutes, Crook, and Jefferson counties.
Provide property tax exemptions on new commercial and industrial investments for up to 3–5 years.

Rural Renewable Energy Development Zones (RREDZ)

Apply to unincorporated areas of Deschutes and Crook Counties.
Offer property tax exemptions for renewable energy systems, from solar farms to biomass projects.

Urban Renewal Areas (Tax Increment Financing)

Several cities, including Bend and Redmond, use TIF districts to fund infrastructure improvements, making them ripe for redevelopment.

Strategic Investment Program (SIP)

Targets large-scale projects by offering property tax reductions for qualifying investments.

Why These Programs Matter in Central Oregon

Central Oregon’s economy is growing, but so are property prices and development costs. These incentives can:

Improve cash flow by lowering taxes in the early years of a project.
Increase ROI through reduced holding costs.
Encourage redevelopment in areas that might otherwise be overlooked.

Whether you’re planning a mixed-use building in Bend’s downtown Opportunity Zone, a solar project in rural Deschutes County, or a commercial expansion in an Enterprise Zone, the right incentive program can make your numbers look a whole lot better.

The tax breaks in Central Oregon aren’t just for giant corporations—they can be a game-changer for local investors, developers, and even small business owners who plan strategically. If you’re considering a project here, now is the time to:

Identify if your property is in an Opportunity Zone or incentive area.
Understand the requirements to qualify for benefits.
Align your investment timeline with the maximum tax advantage period.

FAQs

Q: Are Opportunity Zones in Central Oregon still active?

A: Yes. Several zones in Bend and surrounding areas are still active, offering tax benefits for qualifying investments.

Q: What’s the biggest benefit of investing in an Opportunity Zone?

A: The ability to defer, reduce, and potentially eliminate capital gains taxes if you meet the holding requirements.

Q: Do I have to live in an Opportunity Zone to invest there?

A: No. You just need to invest in qualifying property or businesses located in the zone.

Q: Are there other tax incentive programs besides Opportunity Zones?

A: Yes. Central Oregon has Enterprise Zones, Rural Renewable Energy Development Zones, Urban Renewal Areas, and other state-level programs.

Q: How do I know if a property qualifies for these incentives?

A: The property’s location, use, and type of investment determine eligibility. Local economic development offices and your realtor can confirm.

Q: Can I combine multiple incentives on the same project?

A: Often yes, but it depends on the program rules and project type.

Q: Are these incentives only for big developers?

A: No. Many are available to small businesses, local investors, and even homeowners doing qualifying improvements.