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Two banking giants are set to come to Jersey City, thanks to new tax incentives awarded by the state.

(Jersey Journal file photo)

Two banking giants are set to open offices in Jersey City, now that each has won multi-million tax incentives from New Jersey.

The state Economic Development Authority today awarded JP Morgan Chase Bank tax grants valued at $225 million for creating 1,000 jobs and retaining 2,612, while RBC Capital Markets – the corporate and investment banking arm of Royal Bank of Canada – will get $78.8 million for creating 900 jobs.

The firms will receive the grants over the course of 10 years.

In a statement, Mayor Steve Fulop called the news “a huge win” for Jersey City and New Jersey.

“Jersey City is leading the state economy in terms of job creation and is the driving force in lifting New Jersey out of the recession,” he said. “We will continue to work with the state to promote the benefits of locating a business in Jersey City, where we have a diverse community, a highly-skilled and highly-educated workforce, lower operating costs, and an excellent mass transit system.”

New Jersey Policy Perspective President Gordon MacInnes, meanwhile, called the EDA's award "mind-boggling," and noted that JP Morgan has annual profits of $18 billion.

"This race to the bottom on taxes is not the answer to our state's economic malaise," MacInnes. "Instead, we need to focus on the assets that made the state attractive to businesses in the first place: our location, high-quality public schools and safe, efficient infrastructure."

EDA spokeswoman Erin Gold defended the tax incentives.

"The EDA manages these bipartisan, legislatively-created incentive programs with the highest level of due diligence and in strict compliance with the statutes," Gold said, adding that the programs used to award the tax grants are "performance-based and expressly designed and administered to provide the utmost protection of our resources."

The news comes as Jersey City continues to attract high-profile businesses to set up shop here, like Forbes Media and VF Sportswear, the firm behind apparel brands Timberland and Nautica.

Last week, Bloomberg reported that Bank of New York Mellon is considering moving to Jersey City, too.