1. (1) For the purposes of OAR 123-670-0001 through 123-670-0110, in addition to definitions found in OAR 123-001-0050 (Procedural Rules), the following terms have the meanings set forth below, unless the context clearly indicates otherwise.
2. (2) "Annual Program Cap" means the maximum total amount of tax credits that may be certified by OBDD for all taxpayers for a single tax year, as established by statute at $12,500,000.
3. (3) "Application Period" means the period established by OBDD during which taxpayers may submit applications for certification for a given tax year, as published by OBDD no later than June 30 for each program year.
4. (4) "Authorized Representative" means an individual who has legal authority to act on behalf of a taxpayer and to make legally binding attestations on its behalf, including an officer, owner, or professional representative such as a licensed tax preparer or attorney designated by the taxpayer for purposes of the application.
5. (5) "Average Annual Covered Employment" means the average number of covered employees for whom a taxpayer paid Oregon unemployment insurance contributions during a 12-month measurement period, calculated by summing the number of qualifying covered employees in each of the 12 calendar months of the measurement period and dividing by 12. The result is rounded to the nearest whole number using standard rounding. A covered employee is included in a monthly count only if the employee's hourly rate of compensation, or effective hourly rate as defined in OAR 123-670-0010(7), met or exceeded the wage threshold as defined in OAR 123-670-0010(17) during that month.
6. (6) "Certification" means a written determination issued by OBDD confirming the taxpayer's eligibility for the Qualified Jobs Creation Tax Credit and stating the amount of credit to which the taxpayer is entitled for the applicable tax year.

7. (7) "Compensation" means all financial payments received by an employee from the taxpayer, including base wages or salary, bonuses, commissions, and other cash payments made directly to the employee as remuneration for work performed. Compensation does not include non-financial benefits such as health insurance, retirement plan contributions, paid leave, employee discounts, or other benefits that do not constitute a direct cash payment to the employee. For purposes of determining the wage threshold under these rules, compensation is expressed as an hourly rate as follows:

   1. (a) For employees paid an hourly wage, the hourly rate is the employee's actual hourly rate of pay;
   2. (b) For salaried employees, the hourly rate is determined by dividing the employee's regular weekly salary by the employee's standard scheduled weekly hours; and
   3. (c) For employees whose compensation includes variable elements such as bonuses or commissions, the hourly rate is determined by dividing the employee's total compensation paid during the applicable calendar month by the total hours worked during that month.
8. (8) “Covered Employee” means an individual that provides services to an employer in exchange for renumeration and for whom the taxpayer is required to pay unemployment insurance contributions under ORS chapter 657.
9. (9) "NAICS Code" means a numeric code assigned under the North American Industry Classification System, as published by the United States Office of Management and Budget, that classifies a business establishment based on its primary economic activity. For rules governing which edition of NAICS applies under these rules, see OAR 123-670-0011.
10. (10) "Net New Jobs" means the positive difference, if any, between a taxpayer's average annual covered employment for the 12 months ending June 30 of the calendar year in which the taxpayer's tax year began and the taxpayer's average annual covered employment for the 12 months ending June 30 of the immediately preceding calendar year, as further defined in OAR 123-670-0070.
11. (11) "Primary Business Activity" means the business activity that accounts for the largest share of a taxpayer's total receipts or, where receipts do not accurately reflect the amount of business activity, the business activity that is associated with the largest share of the taxpayer's total employment, when compared to all other activities conducted by the taxpayer.
12. (12) "Qualified Industry" means a sector described in OAR 123-670-0011 and as defined in Oregon Laws 2026, chapter 142, section 12 (SB 1507), as amended by Oregon Laws 2026, chapter 50, section 16 (HB 4084).
13. (13) “Qualified Jobs Creation Tax Credit” or “QJCTC” means the tax credit allowed under Oregon Laws 2026, chapter 142, section 12 to 15 (SB 1507), as amended by Oregon Laws 2026, chapter 50, section 16 (HB 4084).
14. (14) "Successor" means an individual or corporation, partnership, limited liability company, or other legally recognized business organization that continues, absorbs, or acquires the business operations of a predecessor through a merger, conversion, reorganization, consolidation, or acquisition, such that the two share a predecessor/successor relationship for purposes of determining average annual covered employment under these rules.
15. (15) "Tax Year" means the tax year of the taxpayer as defined for purposes of ORS chapter 316, 317, or 318.
16. (16) "Taxpayer" means an individual, corporation, or other legally recognized business organization that is seeking or has received certification under these rules. See OAR 123-670-0015 for rules governing taxpayer identification and filing structure.
17. (17) "Wage Threshold" means the minimum hourly rate of compensation required for a covered employee to be included in the calculation of average annual covered employment under these rules, equal to 150 percent of the applicable Oregon minimum wage as determined under ORS 653.025 for the county in which the employee's primary work is performed. The wage threshold is applied on an hourly basis to each individual covered employee's hourly rate of compensation as defined in section (6) of this rule, regardless of whether the employee works full-time, part-time, or on a seasonal or temporary basis. A covered employee whose hourly rate of compensation does not meet the wage threshold in a given calendar month is excluded from the monthly covered employee count for that month and does not contribute to average annual covered employment for purposes of these rules.

Statutory/Other Authority

ORS 285A.075

Statutes/Other Implemented

Oregon Laws 2026, Chapter 142 & Oregon Laws 2026, Chapter 50

History

OBDD 9-2026, temporary adopt filed 06/02/2026, effective 06/05/2026 through 12/01/2026