A tax incentive buried in Oregon's 2025 revenue bill could put money back in your pocket if you're hiring—but most property owners don't know it exists.
Most Oregon real estate and property management owners have no idea that SB1507, a revenue bill signed into law, contains a tax credit that could directly reduce their state income or excise tax liability. The provision is modest but real: a $1,000 nonrefundable tax credit for each net new job created, up to $10,000 per tax year, available for six years.
Under Section 12 of SB1507 (pages 2–3), Oregon employers can claim a $1,000 tax credit per net new job created, with three conditions:
The credit is nonrefundable, meaning it reduces your tax bill but won't generate a refund if it exceeds what you owe. However, any unused portion carries forward for up to three succeeding tax years, giving you flexibility if your tax liability is lower in a given year.
For property management companies and real estate firms, this applies to net new hires in roles that meet the wage threshold. That could include property managers, maintenance coordinators, leasing agents, or administrative staff—provided they're genuinely new positions and the employees earn at least 150% of minimum wage.
To claim the credit, you must obtain written certification from the Oregon Business Development Department. This is a straightforward but necessary step; you cannot simply claim the credit without documentation.
The credit applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. That's a six-year window. A statewide cap on total credits exists, but individual employers can claim up to $10,000 per tax year during this period.
If you're planning to hire in 2025, note that the credit doesn't apply to those tax years. The earliest you can claim it is for jobs created in the 2026 tax year.
For property management and real estate firms, hiring is often tied to business growth—adding staff to manage new properties, expand services, or handle increased tenant volume. If you're considering hiring and can structure positions to meet the wage requirement, this credit effectively reduces your cost of employment by $1,000 per person, per year, for up to three years of carryforward.
The wage floor (150% of minimum wage) is the key hurdle. As of 2025, Oregon's minimum wage varies by region, so you'll want to verify the applicable rate for your location and confirm proposed salaries meet the threshold before hiring.
If you're planning to hire net new staff in 2026 or later, document the positions carefully and contact the Oregon Business Development Department about certification requirements well before filing your tax return. Keeping clear records of new hires and their wages will make claiming the credit straightforward.
Source: SB1507, Section 12, Pages 2–3. For detailed guidance specific to your business structure, consult a tax professional or contact the Oregon Business Development Department.