A tax incentive buried in Oregon's 2024 revenue bill could reduce your tax bill dollar-for-dollar—but only if you know it exists and meet specific wage requirements.
Most Oregon property management and real estate business owners have no idea that SB1507—a bill focused on state revenue—contains a direct tax credit that could lower their income or corporate excise tax liability by thousands of dollars annually. The provision is real, it applies now, and it has specific eligibility rules worth understanding.
Under Section 12(2)(a) of SB1507, Oregon businesses that create net new jobs can claim a $1,000 tax credit per job, up to $10,000 per year (10 jobs maximum). This is a direct credit—it reduces your tax bill dollar-for-dollar, not a deduction that reduces taxable income.
The credit applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. So if you're planning hiring or expansion, this window matters for your 2026 tax planning forward.
To claim the credit, your business must:
For property management and real estate firms, this could apply to administrative staff, leasing agents, maintenance coordinators, or other permanent positions you add. The 150% wage floor is the key threshold—entry-level positions at minimum wage won't qualify, but reasonably compensated staff will.
If you're a mid-sized property management company or real estate firm considering expansion—hiring a new leasing manager, adding administrative support, or opening a second office—this credit directly offsets your tax liability. A company hiring five new employees at qualifying wages could reduce its annual tax bill by $5,000. Over the six-year window (2026–2031), that's meaningful cash flow.
The credit is particularly relevant if your business is currently profitable and looking for ways to reduce tax burden while growing. It's also worth reviewing if you've already hired new staff in 2025 and are planning 2026 tax filings—you may be eligible retroactively for 2026 tax year positions.
The process requires certification from the Oregon Business Development Department before you claim the credit. This means:
You'll want to track this carefully and coordinate with your tax preparer or accountant, especially since the program is new and OBDD will be establishing certification procedures.
SB1507's job tax credit is a legitimate tool for Oregon property and real estate businesses planning to hire. It's limited in scope (six years, 10 jobs per year maximum), but for the right business at the right growth stage, it can meaningfully reduce tax liability. The key is knowing it exists, meeting the wage requirement, and securing OBDD certification.
Source: Oregon SB1507, Section 12(2)(a), effective for tax years beginning January 1, 2026, through December 31, 2031.