Legislation to eliminate $250 million in uncommitted tax credits previously authorized for certain artificial intelligence and data center projects passed the New Jersey General Assembly last week. Assemblyman Andrew Macurdy, Assemblyman Balvir Singh, and Assemblywoman Annette Quijano sponsored Bill A5165.
Designated as the “End Data Center Tax Credits Act,” the legislation would reduce the amount of tax credits available under the Next New Jersey Program by the remaining uncommitted balance reserved for artificial intelligence (AI) and data center development projects.
“In 2026, with the AI industry among the most profitable in the world and its demand for enormous amounts of electricity driving up costs for residents, these corporate tax credits are no longer the best use of our taxpayer resources. This bill, as amended, would therefore end the tax credit program and save $250 million in taxpayer money,” said Assemblyman Macurdy (D-Middlesex, Morris, Somerset, Union). “This legislation is a responsible step that would promote greater accountability in how economic development incentives are used.”
The Economic Recovery Act of 2020 authorized up to $500 million in tax credits under the Next New Jersey Program for certain artificial intelligence and data center projects. As of May 2026, $250 million has already been awarded to a project and is not affected by the legislation. The bill would eliminate the remaining uncommitted $250 million from the program.
“AI data centers, backed by some of the wealthiest corporations and investors in the world, do not need additional subsidies on the backs of New Jersey taxpayers,” said Assemblyman Singh (D-Burlington). “At a time when New Jersey families are struggling with rising electric bills, groceries, and the cost of everyday essentials, public dollars should be focused on providing relief to residents and investing in the infrastructure needed for a reliable and affordable energy future, not enriching billionaires.”
“Residents expect us to be good stewards of public resources,” said Assemblywoman Quijano (D-Union). “By ending these uncommitted tax credits, we are strengthening oversight of economic development programs and ensuring that incentives are reviewed and adjusted when circumstances change.”