Boston's Tax Perk for JP Morgan

The City of Boston has paved the way for a $4 million tax incentive package for JP Morgan Chase to expand its Boston operation.

Under the agreement, JPMorgan Chase will spend up to $40 million to improve a vacant building in the Seaport District, and add up to four hundred jobs there.

The city will give the investment bank a discount on those higher property taxes, a break worth $2 million over thirteen years.

The state will also help out with another $2 million break. Boston Mayor Tom Menino says the city's offer helps maintain its reputation in the financial services industry.

"It will give JP Morgan the chance to stay and grow in Boston."

City finance official Ron Rakow says JPMorgan Chase wanted to expand in Boston, but got offers from other cities, notably in Texas.

This offer, he says, makes it easier to stay.