New rules add structural-metal, engine and aerospace manufacturers to the program, which offers up to $10,000 annually for creating qualifying jobs.
Oregon has expanded eligibility for its new job-creation tax credit, opening a more direct path for additional manufacturers to receive state tax benefits when they increase employment.
The temporary rules, filed and effective Aug. 10, add three business classifications to the Qualified Jobs Creation Tax Credit’s advanced-manufacturing category: architectural and structural metals manufacturing; engine, turbine and power-transmission equipment manufacturing; and aerospace product and parts manufacturing.
A comparison with the state’s original June rules shows those three classifications were not previously included in the list of industry codes that automatically establish eligibility. The Oregon Business Development Department said the update was needed to broaden participation during the current application cycle.
For Salem-area manufacturers, the change could provide a new incentive for hiring, although the benefit is relatively limited. Qualifying employers may receive a nonrefundable Oregon tax credit of $1,000 for each net new job, covering a maximum of 10 jobs and $10,000 per taxpayer each year.
The program has a statewide annual limit of $12.5 million and applies to tax years beginning in 2026 through 2031.
Companies must meet more than an industry requirement. Each job counted toward the credit must pay at least 150% of the Oregon minimum wage for the county where the employee primarily works.
Marion and Polk counties are in Oregon’s standard minimum-wage region, where the rate increased to $15.55 per hour July 1. That means a Salem-area position generally must pay at least $23.33 per hour to count toward the credit.
Employers must also demonstrate that they created at least one net new Oregon job. Business Oregon calculates employment growth by comparing a company’s average covered employment during two consecutive 12-month measurement periods.
The broader program covers seven targeted industries: advanced manufacturing, bioscience and biotechnology, clean technology, food and beverage processing, forestry and wood products, high technology, and outdoor gear and apparel.
Businesses whose industry codes are not included on the state’s approved list may still seek eligibility by submitting a written explanation showing how their primary operations fit one of the qualifying industries. Companies that merely supply or provide support services to an eligible industry do not qualify on that relationship alone.
Business Oregon’s website says applications must be submitted through an online portal during a window that opens no earlier than July 1 and closes no later than Oct. 31. However, as of Friday, the agency had not posted exact dates for the 2026 application period, and the listed certification-application link directed users to unrelated semiconductor tax-credit material.
Employers must receive written certification from Business Oregon before claiming the credit. Businesses considering an application should confirm the 2026 submission schedule and obtain the correct application materials directly from the agency.
