Office of the Senate President
Contact: Robin Maxey May 12, 2009
Courtney Introduces Direct Tax Cut
For Businesses That Create New Jobs
Senate Bill 4 would provide a tax
credit to companies for new employees added to their payroll. Capped at $10
million, if the per employee tax credit is set at $2,000, the Job Creation Tax
Incentive Plan has the potential to help create 5,000 new jobs in
“Create a job, get a tax cut. It’s just that simple,” said Courtney (D-Salem/Gervais/Woodburn) “My goal is give Oregon companies – especially our invaluable small businesses – the opportunity to build the momentum that will grow our economy out of the hole created by the national recession.”
“Senate Bill 4 is an innovative and positive way to get Oregonians back to work by supporting the private sector,” said Oregon Business Association President Ryan Deckert. “Businesses will appreciate the straight forward nature of this incentive -- it doesn’t require a series of complicated calculations, a mountain of paperwork or an army of accountants to figure it out.”
To qualify for the tax credit, companies must hire new workers between July 1 and December 31, 2009, and keep them employed for a minimum of 12 months. The tax credit is non-transferrable and non-refundable, meaning companies that add new employees can have their taxes reduced but cannot use the credit to earn a tax refund from the state. The credit can, however, be rolled over or used over three years.
Businesses would qualify for the tax break for every full time equivalent (FTE) increase above their June 1, 2009, payroll level. At $2,000 per employee, the addition of 10 new employees would earn a business a $20,000 reduction in their state taxes. The credit is also scalable. A firm that hired one 30-hour a week employee could receive 75 percent of the per-employee credit.
Courtney said the amount of the per employee credit will be determined when the measure goes to committee where he will also seek to add a provision to the bill requiring that qualifying employees be paid a living wage.