1. (1) This rule establishes how the term "taxpayer" is applied for purposes of QJCTC certification and eligibility under these rules, including rules governing individual filers, corporations included in Oregon consolidated returns, and pass-through entities. This rule governs who may apply for certification and at what level eligibility is assessed.
2. (2) Individual Taxpayers. An individual subject to Oregon personal income tax under ORS chapter 316 who operates a business whose primary business activity falls within a qualified industry as defined in OAR 123-670-0011 may apply for and receive certification under these rules in the same manner as a business organization. Eligibility is assessed based on the individual's business operations, covered employment, and compliance with the wage threshold requirements of OAR 123-670-0020. An individual taxpayer is subject to the same credit cap of $10,000 (up to $1,000/per net new job, up to 10 jobs) per tax year as any other taxpayer.

3. (3) Corporations Included in Oregon Consolidated Returns.

   1. (a) For purposes of the QJCTC, each corporation included in an Oregon consolidated return filed pursuant to ORS 317.710(5)(c) is treated as a separate taxpayer that may apply for tax credit certification. To be eligible, each such corporation must independently meet all requirements of Oregon Laws 2026, chapter 142, section 12 (SB 1507), as amended by Oregon Laws 2026, chapter 50, section 16 (HB 4084) and any applicable rules.
   2. (b) Each qualifying corporation in a consolidated group must submit its own separate application for certification under OAR 123-670-0030. The consolidated group itself is not eligible for certification and may not apply as a single taxpayer.
   3. (c) The credit cap of $10,000 (up to $1,000/per net new job, up to 10 jobs) applies separately to each qualifying corporation in the consolidated group.
   4. (d) A corporation applying for certification must attest in its application that the jobs for which certification is sought were created by that corporation, not by any other corporation included in the consolidated return, and that the attesting corporation’s net new jobs are not the basis for a certification application submitted by any other corporation.
   5. (e) Each corporation applying for certification that is part of a consolidated group must identify in its application the corporation that files the Oregon consolidated return on behalf of the group, including the legal name, FEIN, and Oregon business identification number of that filing corporation.

4. (4) Pass-Through Entities.

   1. (a) A partnership or S corporation that creates net new jobs may apply for and receive certification under these rules.
   2. (b) A partnership or S corporation applying for certification must identify in its application each partner or shareholder to whom the credit will be passed through, including the legal name and FEIN or, for individual partners or shareholders, the Social Security number of each such person, and the percentage of the credit to be allocated to each.
   3. (c) The eligibility requirements of OAR 123-670-0020 and Oregon Laws 2026, chapter 142, section 12 (SB 1507), as amended by Oregon Laws 2026, chapter 50, section 16 (HB 4084) are assessed at the level of the partnership or S corporation that created the net new jobs.

5. (5) Combined Credits and Passed-Through Credits.

   1. (a) A corporation, individual, or other taxpayer that independently creates net new jobs may apply for and receive its own certification for those jobs, even if the same taxpayer also receives a QJCTC credit passed through from a pass-through partnership or S corporation of which it is a partner or shareholder.
   2. (b) The credit cap of $10,000 (up to $1,000/per net new job up to 10 jobs) is imposed when a taxpayer is certified for jobs it directly created. It is not applied to any credit passed through to the taxpayer from a pass-through entity, provided the jobs underlying each credit application are distinct.
   3. (c) A taxpayer that both directly creates net new jobs and receives a passed-through credit must attest in its application for certification that the net new jobs for which it seeks certification are distinct from the jobs for which the pass-through entity of which it is a partner or shareholder was certified.
6. (6) No Double Counting of Jobs. The same jobs may not be the basis for more than one certification under these rules, regardless of the taxpayer structure involved. OBDD may deny or revoke a certification if it determines that the same jobs have been used as the basis for a credit by more than one taxpayer.

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