ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5165

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 23, 2026

      The Assembly State and Local Government Committee reports favorably and with committee amendments Assembly Bill No. 5165.

      As amended and reported, this bill, designated as the "End Data Center Tax Credits Act," reduces the amount of tax credits available for the Next New Jersey Program by $250 million.

      The "Economic Recovery Act of 2020," P.L.2020, c.156 (ERA), authorized the award of tax credits under the New Jersey Aspire Program, Emerge Program, and certain other economic development programs with limits on the amount of tax credits available under each program.  Under current law, the total value of tax credits available under the ERA is limited to $14 billion over a nine-year period.  Of this amount, $500 million is currently available under the Next New Jersey Program (Next NJ) for certain projects related to the development of artificial intelligence or data centers.  As of May 2026, the New Jersey Economic Development Authority has awarded $250 million in tax credits to one project under Next NJ, which award is not impacted by this bill.

      This bill reduces the total amount of tax credits available under Next NJ by the uncommitted amount of $250 million.

COMMITTEE AMENDMENTS:

      The committee amendments remove provisions of the bill that would have authorized roughly $250 million in tax credits, including:  (1) the award of tax credits by the Board of Public Utilities to the developers of energy storage projects under existing programs; and (2) the provision of one-time gross income tax credits to lower-income taxpayers who are residential electric customers.

      The committee also updated the title and synopsis of the bill.