A tax incentive buried in Oregon's 2024 revenue bill could put money back in your pocket—but only if you know it exists and plan ahead.
Most Oregon restaurant owners have no idea that SB1507, a bill focused on state revenue, contains a tax credit that could directly benefit their hiring decisions. The provision is real, it's substantial, and it requires advance planning to use.
What the credit does
Under Section 12 of SB1507, Oregon employers who create net new jobs can claim a $1,000 nonrefundable income or excise tax credit per qualifying job. For restaurants, this means each new employee you hire—up to 10 per year—could generate $1,000 in tax relief, provided they meet two conditions: the job must be new (net new to your business), and the employee must earn at least 150% of Oregon's minimum wage.
The annual cap is $10,000 per taxpayer, and statewide the program is capped at $12.5 million. Unused credits can carry forward for up to three subsequent years, giving you flexibility if you don't hit the maximum in a single year.
Who qualifies
The credit applies to restaurants and other businesses that are net job creators. "Net new" means jobs that didn't exist before—not replacements for departed employees. The wage floor of 150% of minimum wage is the key qualifier. As of 2024, Oregon's minimum wage ranges from $14.20 to $15.45 depending on region, so qualifying jobs would need to pay roughly $21–$23 per hour or more.
This wage requirement matters: it's not a burden for many restaurants paying competitive rates to retain kitchen and front-of-house staff, but it does mean minimum-wage positions won't generate credits.
The pre-certification requirement
Here's the critical step most owners will miss: you must get pre-certification from the Oregon Business Development Department before you can claim the credit. This isn't automatic. You'll need to apply in advance, demonstrating that the jobs you're creating meet the criteria. Plan for this process before you hire.
Timeline and effective dates
The credit applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. That means it's not available yet, but the window to plan is now. If you're considering expansion or seasonal hiring increases, understanding this credit before 2026 arrives gives you time to structure hiring strategically.
What this means for your decisions
If you're planning to grow your team, the credit could offset some hiring costs. A restaurant adding five net new positions at qualifying wages could claim up to $5,000 in tax relief in a single year. Over six years, that's meaningful money. The three-year carryforward also means you don't lose credits if you spread hiring across multiple years.
The wage floor and pre-certification requirement mean this isn't a surprise windfall—it requires intentional planning. But for restaurants genuinely expanding payroll, it's a real incentive worth understanding before 2026.
For detailed guidance on SB1507 and how it applies to your restaurant, contact the Oregon Business Development Department or consult a tax professional familiar with Oregon employment credits.