New tax credit helps Oregon businesses grow jobs

Eligible employers can apply through October 31 for credits of up to $10,000.

Business Oregon is accepting applications for the new Qualified Jobs Creation Tax Credit, a statewide program created by the Oregon Legislature earlier this year that supports businesses creating jobs in Oregon. Applications for the 2026 tax year opened September 1 and will close October 31, 2026.

The program provides a credit of $1,000 per qualifying net new job, covering up to 10 jobs for a maximum of $10,000 per taxpayer per tax year. The credit reduces Oregon tax liability for eligible employers growing their workforce.

"Creating quality jobs starts with supporting the businesses investing in our communities," said Sophorn Cheang, director of Business Oregon. "This program empowers Oregon employers to expand their teams while connecting more Oregonians with well-paying opportunities. We encourage businesses across the state to review the requirements and explore whether they qualify."

Established in 2026 through Senate Bill 1507 and amended by House Bill 4084, the program serves businesses whose primary activity falls within one of seven qualified industries:

• Advanced manufacturing
• Bioscience and biotechnology
• Clean technology
• Food and beverage processing
• Forestry and wood products
• High technology
• Outdoor gear and apparel

To qualify, employers must demonstrate net job growth under the program’s employment calculation requirements. Jobs counted toward the credit must meet a wage threshold of at least 150% of the applicable Oregon minimum wage where the employee primarily works.

Business Oregon must certify eligibility before a taxpayer can claim the credit on an Oregon tax return. Statewide certifications are capped at $12.5 million annually. If approved requests exceed that amount, credits will be reduced proportionately.

Businesses can review eligibility requirements, access employment and wage calculation worksheets, and apply through the Qualified Jobs Creation Tax Credit webpage. Questions about the program can be directed to Incentives.Program@BIZ.oregon.gov.