Bill > SB209

This bill creates a new tax credit for employers participating in the Oregon Youth Employment Program, designed to incentivize hiring young workers. Specifically, the bill allows eligible employers to claim a tax credit of up to $2,500 for each eligible employee aged 14-24 who works at least 200 hours during a tax year through the program. To claim the credit, employers must first receive written certification from the Employment Department and cannot use the credit to reduce their tax liability below zero. Any unused credit can be carried forward and applied to taxes in the next three successive tax years. The credit will be available for tax years beginning between January 1, 2026, and January 1, 2032, and applies to both individual income and corporate excise taxes. The Higher Education Coordinating Commission and Employment Department will develop rules to verify taxpayer eligibility, and the credit will be added to the list of business tax credits that can be passed through to shareholders of S corporations. The bill aims to encourage youth employment by providing a financial incentive for businesses to hire young workers through a state-sponsored employment program.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB209