ORS 307.330: Commercial facilities under construction.

(1) Except for property centrally assessed by the Department of Revenue, each new building or structure or addition to an existing building or structure is exempt from taxation for each assessment year of not more than two consecutive years if the building, structure or addition:

      (a) Is in the process of construction on January 1;

      (b) Is not in use or occupancy on January 1;

      (c) Has not been in use or occupancy at any time prior to such January 1 date;

      (d) Is being constructed in furtherance of the production of income; and

      (e) Is, in the case of nonmanufacturing facilities, to be first used or occupied not less than one year from the time construction commences. Construction shall not be deemed to have commenced until after demolition, if any, is completed.

      (2) If the property otherwise qualifies for exemption under this section and ORS 307.340, the exemption shall likewise apply to any machinery or equipment located at the construction site which is or will be installed in or affixed to such building, structure or addition.