Procter & Gamble is expected to grow its Iowa City operation through a $150 million addition to its current facility that will create 100 new jobs.
The company plans to expand its Oral-B site by adding another production line in a new, 150,000-square-foot facility expected to cost around $75 million to construct. Oral-B will also spend about $75 million more to purchase up-to-date equipment for the facility.
Procter & Gamble’s project was awarded $5.25 million in “tax benefits” through the Iowa Economic Development Authority’s High Quality Jobs Program on Friday, Sept. 19. These benefits include a 2% investment tax credit, up to $3 million, and a refund of sales or use taxes during construction, up to $2.25 million.
The investment tax will be delivered as $600,000 in credits annually across five fiscal years.
The High Quality Jobs Program “provides qualifying businesses assistance to offset some of the costs incurred to locate, expand or modernize an Iowa facility,” according to the IEDA website. Assistance can include loans, tax credits, exemptions or refunds.
Iowa City offers local tax assistance
Local support is required by the Iowa Economic Development Authority for High Quality Jobs applications. The Iowa City City Council approved a form of local support in an agenda item on their most recent council agenda.
As part of their local match, Iowa City will offer a tax exemption for the project that will lessen the property tax load over the first five years.
In the first year, 75% of the value of the new building will be exempt from taxation. The next year, 60% will be exempt, and the percentage will continue to shrink by 15% each year for the five-year tax-exempt period.
For Oral-B to actually receive the benefits of the local match, the company must submit a partial exemption form to the Iowa City Assessor’s Office by Feb. 1 “in the year that construction begins,” a city staff report said.
Oral-B facility to create 100 jobs in Iowa City
Oral-B currently employs about 600 people in Iowa City, according to city council documents. Construction of the new production line is expected to add 100 new jobs in the area.
This will include 95 “manufacturing technicians” at a wage of $31.75 per hour and five “project managers” earning $41 per hour, according to council documents.
According to Iowa Economic Development Authority documents, construction on the new building is tentatively scheduled to begin in the fall of 2026.
Ryan Hansen covers local government and crime for the Press-Citizen. He can be reached at rhansen@press-citizen.com or on X, formerly known as Twitter, @ryanhansen01.
This article originally appeared on Iowa City Press-Citizen: Procter & Gamble’s planned $150M expansion expected to add 100 new jobs in Iowa City
Reporting by Ryan Hansen, Iowa City Press-Citizen / Iowa City Press-Citizen
USA TODAY Network via Reuters Connect
