Offshoring is the practice of locating some of a company’s manufacturing, services, or other processes in a country other than the country where the company is based. Offshoring is typically done to access lower-cost labor resources, labor resources with specific skills, and infrastructure, such as manufacturing plants.
In Oregon, as in other states, offshoring is not directly regulated by state-specific legislation. Instead, companies in Oregon are subject to federal laws and international trade agreements that govern offshoring practices. These federal regulations include tax laws, trade agreements, and labor standards that must be adhered to when engaging in offshoring. For instance, the Tax Cuts and Jobs Act of 2017 introduced changes to the tax code that affect how offshoring activities are taxed. Additionally, companies must comply with regulations such as the Foreign Corrupt Practices Act (FCPA) to prevent corruption and ensure fair competition. While Oregon may offer state-level incentives for businesses to keep operations local, such as tax credits or grants, these incentives are designed to encourage in-state investment rather than directly restrict offshoring. Companies considering offshoring should consult with an attorney to ensure compliance with all applicable laws and to understand any potential legal implications of their offshoring decisions.