Today, the Utah Governor’s Office of Economic Opportunity awarded Procter & Gamble Paper Products Company (P&G) a temporary, marginal tax reduction for its expansion in rural Utah. The post-performance corporate incentive is part of the Legislature’s Rural Economic Development Tax Increment Financing (REDTIF) program.
As part of the agreement, P&G plans to invest $400 million and at least 100 new jobs in rural Utah during the next 20 years.
“Procter & Gamble is a well-known company with brands that are in almost all Utah households,” said Ryan Starks, executive director of the Governor’s Office of Economic Opportunity. “We’re excited they have decided to expand in Box Elder County, and we wish the company success as they continue to grow.”
P&G is a multinational corporation that manufactures consumer products in countries throughout the world. The company produces products in the cleaning, laundry, paper, beauty care, and health care segments. P&G’s brands have been trusted in millions of living rooms, kitchens, laundry rooms, and bathrooms for generations. For over 180 years, the company has committed to making people’s lives better in small but meaningful ways.
The Procter & Gamble Box Elder facility was established in 2010 and has expanded multiple times. It currently operates on approximately 750 acres of land, with over 40 acres under its roof. Today, over 500 employees work at the site supporting the company’s efforts across P&G’s Paper, Baby Care, and Feminine Care businesses.
“We are excited to expand our operations in Box Elder County to meet the growing demand for our products and serve our consumers,” said Seth Garner, senior director of Product Supply Manufacturing, Box Elder Plant. “We’re grateful to the Box Elder County community, a place we have called home since 2010, for their continued support, and we look forward to many years of partnership and growth.”
P&G may receive up to 10% of the additional state taxes it will pay over the 20-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing (REDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year P&G meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“We are thoroughly impressed by Procter & Gamble’s continued investment in Box Elder County and their commitment to being a world-class corporate citizen,” said Scott Cuthbertson, president and CEO of EDCUtah. “The company’s ongoing diligence in resource stewardship and quality job growth makes them an ideal partner in Utah’s goal for economic prosperity.”
Tax Credit Projections
|Capital investment:||$400 million|
|New state tax revenue:||$104,224,923|
|REDTIF new state tax credit:||10%|
Learn more about the state’s post-performance REDTIF program here.