Oregon Governor Proposes Tax Credits For Recycling Engines




Oregon Governor Kate Brown is pushing to improve Oregon’s transportation system. In October, she released a plan to ensure the state’s transportation grow the economy and meet Oregon’s climate goals. One of her top goals to achieve her vision of improving Oregon’s Transportation System is to maintain a strong Oregon trucking industry while addressing the health impacts of diesel emissions.

The plan calls for the establishment of tax credits for replacing and recycling older engines. There is a cost to replacing older engines with newer, lower emission engines and Oregon is already the most expensive state in the country to operate a commercial vehicle. The Governor wants to incentivize the purchase of new engines, ensuring that Oregonians will realize the benefits of newer, cleaner technologies.

“Tax credits can incentivize owners to replace older diesel-powered engines. Tying the tax credit to the recycling of the older equipment prevents any additional diesel pollution and can be crafted to target smaller, Oregon-based companies that historically have not applied for similar credits,” the plan stated. Tax credits can be tiered to the age, size, and type of equipment being replaced.

The trucking system moves 74 percent of all freight tonnage in, out and throughout the state, according to the Governor’s plan. “Because of federal regulations, newer diesel engines used by heavy-duty trucks are clean burning and emit 90 - 95 percent less pollution than older engines,” the plan stated.

The plan also calls for a:

  • A $5.3 billion statewide transportation package, including construction and maintenance of critical roads and bridges, and a major new statewide transit program.
  • Tackle congestion with multimodal solutions on existing facilities and strategic additions to capacity.
  • Support broad innovation in the transportation sector.
  • Put 50,000 electric vehicles on Oregon roads by 2020.
  • Utilize aviation to support rural Oregon and resiliency.
  • Bring high speed rail to the Pacific Northwest.

Read the entire plan on the website, www.oregon.gov

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