New Jersey halves AI data center tax credits and closes the program to new applicants
A new law cuts the state's artificial intelligence and data center credit pool from $500 million to $250 million; the state says the remaining credits are fully allocated.
Developers planning large artificial intelligence data centers in New Jersey can no longer count on a state tax credit award, because the only program built for them is closed. On August 27, 2026, Governor Mikie Sherrill signed S4390, the “End Data Center Tax Credits Act,” as P.L. 2026, c. 77, which amends N.J. Stat. Ann. § 34:1B-362 to cut the credits reserved for the Next New Jersey Program from $500,000,000 to $250,000,000, effective immediately.
P.L. 2026, c. 77 (S4390), approved Aug. 27, 2026; N.J. Stat. Ann. § 34:1B-362; Next New Jersey Program Act, P.L. 2024, c. 49 (N.J. Stat. Ann. §§ 34:1B-394 to -402); N.J. Admin. Code tit. 19, ch. 31CC