Hillsboro Approves Long-Term Data Center Tax Incentives Before State Moratorium
Hillsboro's city officials approved tax exemptions for data centers just prior to a statewide moratorium on new incentives. This move has raised concerns among residents regarding transparency and the long-term implications for local resources.
Hillsboro has approved multiple enterprise zone tax abatements for data centers, with exemptions potentially extending to the 2050s. This decision comes just before the Oregon Legislature's one-year moratorium on new data center tax exemptions, which was enacted through House Bill 4084 in March.
City officials reported receiving 17 applications from eight entities, citing limited discretion in denying qualifying projects. The enterprise zone program offers 100% property tax abatements for three to five years for new investments.
Community members argue this accelerates long-term incentives contrary to state calls for a pause to assess resource impacts. The City Council plans discussions on a temporary halt to new approvals in June.
Comments