By Heather Haddon
J.P. Morgan Chase & Co. is looking to move 2,150 jobs from
New York City to Jersey City, the latest expansion of the financial
institution across the Hudson River.
The New Jersey Economic Development Authority on Thursday is
expected to consider an application by the New York City-based bank
for a $19 million subsidy over 10 years, the second round of tax
credits for the firm in about a year as the state seeks to create
jobs in the Hudson County city.
New Jersey's unemployment rate was 6.5% in May, compared with
New York state's 5.7% and 5.5% for the nation, according to the
U.S. Bureau of Labor Statistics.
The J.P. Morgan jobs were described by people familiar with the
negotiations as information technology positions that are now
housed in the bank's various offices in New York City. The move
would allow the company to consolidate the jobs in one place and
cut costs during a time that the bank was seeking to ratchet down
expenses.
New Jersey was one of the areas where the bank had been looking
to move for more than a year, and the state provided the most
attractive package of incentives, according to these people.
High-level members of the Christie administration had been involved
in discussions with the bank for months, they said.
A spokeswoman for the Economic Development Authority said the
agency didn't comment on projects before the board took action on
them.
A spokesman for New York City Mayor Bill de Blasio's
administration didn't respond to a request for comment.
New Jersey has been aggressive in offering tax credits to
companies looking to move to the state or to encourage firms to
remain there. The state has awarded more than $5 billion in
corporate tax subsidies since Republican Gov. Chris Christie first
took office in 2010.
Jersey City has benefited from at least 20 awards since December
2013, according to state records. Office towers on the city's
waterfront have continued to attract financial services
companies.
Last year, the Economic Development Authority awarded J.P.
Morgan $225 million in tax credits to create 1,000 jobs in Jersey
City and to retain 2,612 positions. The company purchased office
space at 575 Washington Blvd. and is leasing space nearby.
Other financial services companies that received state tax
credits since December 2013 to relocate or expand in Jersey City
include RBC Capital Markets, Principis Capital LLC, New York Life
Insurance Co., Brown Brothers Harriman Co., Fidelity Global
Brokerage Group and Jackson Hewitt Inc.
J.P. Morgan Chase's move is the latest salvo in a battle between
New York City and New Jersey over financial sector jobs.
Last year, J.P. Morgan approached New York City officials with a
request for tax breaks and other incentives valued at hundreds of
millions of dollars to help it build a new headquarters on
Manhattan's far West Side.
The bank, which has about 241,000 employees, offered to keep
least 16,000 in New York City with the new headquarters. It was a
dip from the roughly 20,000 housed in the city then but more than
the level it might sustain in the city if it didn't get the
incentives.
Mr. de Blasio said last year the bank's request for the tax
breaks was "a nonstarter." The bank later moved away from the
plan.
Keiko Morris contributed to this article
Write to Heather Haddon at heather.haddon@wsj.com
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