N.J. legislators to introduce bill cutting tax incentives for data centers
New Jersey legislators are planning to introduce a bill to eliminate $250 million in tax incentives for artificial intelligence data centers. The sponsors intend to redirect the savings to ratepayer relief and investments in clean energy, citing public concern over data centers' high energy consumption and rising utility costs. This move aligns with public sentiment, as recent polls indicate a majority of New Jerseyans desire a moratorium on data center construction.
Three New Jersey legislators, Assemblymen Andrew Macurdy (D-Summit) and Balvir Singh (D-Burlington Twp), and state Sen. Joe Cryan (D-Union Twp), announced plans to introduce a bill aimed at halting $250 million in tax incentives for artificial intelligence data centers in the state. The proposed legislation seeks to reshape the 2024 Next New Jersey tax credit program, which had pledged the $250 million award to a data center in Union County.
The sponsors stated that the funds saved from these incentives would be reallocated to provide relief for ratepayers struggling with increasing utility costs, and to invest in energy storage and solar energy production. Assemblyman Macurdy emphasized that tax credit incentives for energy-intensive AI data centers are no longer the best use of government resources. Senator Cryan added that the initiative is about prioritizing residents over corporations and ensuring state investments focus on affordability, reliability, and long-term sustainability.
The legislators highlighted strong public support for their proposal, noting that recent polls indicate a majority of New Jerseyans are concerned about data center proliferation and desire a temporary halt to construction. Some polls also show support for banning such facilities from towns, with congressional candidates beginning to address this public anger in their campaigns. The bill is expected to be formally introduced later this month.