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 will 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.
Recently, the project was awarded $5.25 million in tax benefits through the Iowa Economic Development Authority's High Quality Jobs Program, reports the Iowa City Press-Citizen. 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.
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.
According to Iowa Economic Development Authority documents, construction on the new building is tentatively scheduled to begin in the fall of 2026.