A tax incentive buried in SB1507 could offset hiring costs for Oregon property management and real estate firms—if you know how to claim it.
Most Oregon real estate and property management owners haven't heard about a tax credit in SB1507 that could directly reduce their tax liability when they hire new employees. The provision is real, it's substantial, and it has specific rules that matter for your bottom line.
Under Section 12 of SB1507, Oregon employers can claim a $1,000 nonrefundable income or excise tax credit for each net new job created—up to 10 jobs per year. To qualify, the new employee must be paid at least 150% of Oregon's minimum wage.
For a property management company that hires 10 qualifying positions in a single tax year, that's a potential $10,000 credit against state taxes. The credit is capped at $10,000 per taxpayer annually, and statewide spending is capped at $12.5 million.
Unused credit can be carried forward for up to three subsequent tax years, meaning if you don't use the full $10,000 in year one, you can apply it later.
The credit applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. That's a six-year window.
Real estate firms and property management companies that are actively hiring fall into this category. The credit rewards net new jobs—meaning you need to show growth beyond your current headcount. A property manager expanding from 15 employees to 20 could claim credit for those 5 new positions (assuming they meet the wage threshold).
Here's the critical detail many miss: you cannot simply claim this credit on your tax return. The Oregon Business Development Department must pre-certify your eligibility before you can claim it. This is not automatic. You'll need to apply, document your net new hires, verify wage levels, and receive approval from the state before filing.
This means planning ahead matters. If you're considering hiring in 2026, understanding the certification process now—even though the credit doesn't take effect until next year—gives you time to prepare documentation and coordinate with the state.
For property management and real estate firms, this credit can modestly offset the cost of hiring administrative staff, leasing agents, maintenance coordinators, or other positions that pay at least 150% of minimum wage. It's not a game-changer, but $1,000 per qualifying hire is real money that reduces your tax bill.
The wage floor—150% of minimum wage—is important. Oregon's minimum wage varies by region and employer size. Verify your wage structure qualifies before counting on the credit.
The six-year window is also worth noting. If you're planning expansion or staffing changes, timing matters. The credit expires for tax years beginning on or after January 1, 2032.
SB1507, Section 12, Page 3, contains the full statutory language. For detailed guidance on pre-certification requirements and wage verification, the Oregon Business Development Department will be the authoritative source once the credit takes effect.