Governor’s Office of Economic Development offers Ancestry $2.4 million to stay in Utah
The Utah Governor’s Office of Economic Development announced Thursday that it has entered into an agreement with Ancestry that will allow the company to expand its operations in Utah.
The nine-year contract states that Ancestry will continue to expand, with the possibility of creating up to 506 jobs in Utah. If Ancestry meets contract requirements, the company may earn up to 20% of the new state taxes they will pay over the course of the contract in the form of a post-performance Economic Development Tax Increment Finance tax credit rebate.
The post-performance tax credit rebate, according to the office of economic development, will not exceed $2,445,720, and it will not be awarded all at once — rather, at the end of each year, if it has been determined Ancestry has met contract requirements, including an agreement that total wages in aggregate will exceed 110% of average county wage, the company will be paid a portion of the rebate.
The Ancestry expansion is expected to bring $12,228,599 to state tax revenues over the nine years and up to $10.5 million in capital investment.
“Ancestry is an international company with homegrown roots that enhance Utah’s Silicon Slopes,” Val Hale, executive director of the Utah Office of Economic Development, said. “This innovative company is leveraging their insights and information to improve lives in family history. We are pleased that this new agreement will allow Ancestry to continue a long history as a business leader in the Utah community and continue to expand its operations in the state.”
Ancestry has been a part of the Utah business community for roughly three decades and has become a leading provider of family history and consumer genetics services, with more than 3 million paying subscribers across its core Ancestry websites, over 10 billion digitized historical records, and nearly 15 million participants in the AncestryDNA database.
Users have created over 100 million family trees and 12 billion ancestor profiles on the Ancestry flagship site and affiliated international websites.
“We are pleased to enter into this new agreement with the Governor’s Office of Economic Development, which will allow us to expand our headquarters presence to support the strong growth in our business,” Howard Hochhauser, chief financial officer and chief operating officer at Ancestry, said. “In addition, we are excited to have the opportunity to benefit from Utah’s talented workforce as we focus on delivering innovative products for our consumers that will fuel their personal discovery journeys as they seek to learn more about themselves and their families.”