A tax credit buried in Oregon's revenue bill could put money back in your pocket if you're hiring—but only if you know it exists and meet specific requirements.
Most Oregon retail owners have no idea that SB1507, a revenue bill that passed in 2024, contains a job-creation tax credit that could directly reduce their state taxes. The provision isn't advertised widely, and it comes with specific conditions. Here's what you need to know.
If you own a retail business in Oregon and hire net new employees—people who represent a genuine increase in your payroll, not replacements—you can claim a $1,000 nonrefundable tax credit per new job. The maximum is 10 jobs per tax year, meaning up to $10,000 in credits annually.
The catch: those new employees must earn at least 150% of Oregon's minimum wage. This requirement is designed to encourage quality jobs, not minimum-wage positions.
You can't simply claim this credit on your tax return. You must first obtain written certification from the Oregon Business Development Department. This means contacting them, documenting your new hires, and proving they meet the wage threshold before you file taxes. Plan ahead—this isn't a retroactive process.
The credit itself is nonrefundable, meaning it reduces your tax liability 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 the year you claim it.
This credit applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. That's a six-year window. If you're planning to hire in 2026 or beyond, this is worth tracking. If you're hiring now, you won't be eligible until next year's tax year.
There is a statewide cap on total credits issued, though the specific dollar limit is not yet publicly detailed in available summaries. This means the state may stop issuing new certifications once a threshold is reached, so early applicants may have an advantage.
This credit is most valuable for retail owners actively expanding their workforce. If you're opening a new location, extending hours, or growing your team, this could offset some of the payroll cost. It's less relevant if you're replacing departing employees rather than adding net new positions.
The 150% minimum wage requirement matters too. As of 2024, Oregon's minimum wage varies by region (Portland metro, standard, and rural counties). You'll need to ensure new hires meet the threshold for their location.
If you anticipate hiring net new employees in 2026 or later, contact the Oregon Business Development Department now to understand the certification process. Keep detailed payroll records showing which employees are net new additions. When you're ready to hire, apply for certification before claiming the credit.
This provision is found in Section 12 of SB1507, pages 2–3. For a detailed, business-specific breakdown of how this applies to your situation, resources are available through Oregon retail trade associations and the state business development office.