IOWA CITY, Iowa — Procter & Gamble (P&G) is preparing to significantly expand its Iowa City operations with a $150 million investment that is expected to bring 100 new jobs to the community.
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The company’s plan centers on a new 150,000-square-foot facility at its existing Oral-B site, which will house an additional production line. Roughly $75 million will go toward construction, while another $75 million will fund new, state-of-the-art equipment for the site.
To support the expansion, the Iowa Economic Development Authority (IEDA) approved $5.25 million in tax benefits through the High Quality Jobs Program on Sept. 19. These benefits include a 2% investment tax credit worth up to $3 million and a refund of sales or use taxes during construction valued at up to $2.25 million. The credits will be distributed over five years at $600,000 annually.
The High Quality Jobs Program is designed to encourage businesses to expand or modernize operations in Iowa. According to IEDA, it provides financial tools such as loans, tax credits, exemptions, and refunds to reduce the cost of development.
In addition to state support, Iowa City is providing local tax incentives. The Iowa City Council recently approved a measure offering a five-year property tax exemption that gradually phases out: 75% in the first year, 60% in the second, and declining by 15% annually until year five. To qualify, P&G must file a partial exemption form with the city assessor’s office before Feb. 1 in the year construction begins.
Currently, Oral-B employs around 600 workers in Iowa City. The expansion is projected to add 95 manufacturing technicians with wages of $31.75 per hour and five project managers earning $41 per hour, according to city council documents.
The project remains in early planning stages, with construction expected to begin in the fall of 2026. Once complete, the facility will strengthen Iowa City’s role as a key hub in P&G’s oral care product line.
The expansion represents a major economic boost for the region. Beyond creating new, high-paying jobs, the project reinforces P&G’s long-term commitment to Iowa City. For the community, the expansion could bring a ripple effect of increased demand for housing, services, and local suppliers.
Iowa leaders praised the project, noting how the combination of state and local incentives makes the city an attractive site for corporate growth.
With this latest expansion, P&G is further cementing Iowa City’s position within its North American supply chain while giving a lift to the local workforce and economy.
Originally reported by Ryan Hansen in Iowa City Press-Citizen.
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