'End Data Center Tax Credits Act' Advances in NJ Legislature

Two Union County legislators are pushing state legislation that would redirect $250 million in corporate tax credits toward energy infrastructure and consumer relief instead of artificial intelligence and data center projects. Assembly Bill A5165, the "End Data Center Tax Credits Act," passed the New Jersey General Assembly in July 2026.

Assemblywoman Annette Quijano, who represents Union County, and Assemblyman Andrew Macurdy, who represents a district including Union County, co-sponsored the bill along with Assemblyman Balvir Singh. The legislation would eliminate uncommitted tax credits authorized under the Next New Jersey Program for AI and data center development.

Union County Life is reporting on this legislation affecting Union County residents. The Economic Recovery Act of 2020 authorized up to $500 million in tax credits under the Next New Jersey Program for AI and data center projects. As of May 2026, $250 million has already been awarded to a project and is not affected by this 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," Assemblyman Singh said in a statement. "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."

Assemblyman Macurdy emphasized the industry's profitability and rising costs to residents. "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. This legislation is a responsible step that would promote greater accountability in how economic development incentives are used."

Assemblywoman Quijano framed the bill as fiscal oversight. "Residents expect us to be good stewards of public resources. 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."

The bill has passed the Assembly and moves to the New Jersey Senate for consideration. For more information about state legislation affecting Union County, stay informed on Union County Life.

FAQ

Q: What is Assembly Bill A5165?
A: Assembly Bill A5165, the "End Data Center Tax Credits Act," would eliminate $250 million in uncommitted tax credits reserved for artificial intelligence and data center projects under the Next New Jersey Program. The bill was sponsored by Assemblywoman Annette Quijano (Union), Assemblyman Andrew Macurdy (Union/other districts), and Assemblyman Balvir Singh and passed the General Assembly in July 2026.

Q: Why are Union County legislators supporting this bill?
A: The sponsors argue that AI data centers are backed by wealthy corporations and do not need additional taxpayer subsidies, especially when New Jersey families are struggling with rising electric bills and living costs. They say the $250 million could be better used for energy infrastructure and consumer relief.

Q: How much money are we talking about?
A: The bill would eliminate $250 million in uncommitted tax credits. This is the remaining balance of a $500 million program authorized by the Economic Recovery Act of 2020. $250 million has already been awarded to a project and would not be affected by this legislation.

Q: What does the bill say about energy costs?
A: The sponsors note that AI data centers demand enormous amounts of electricity, which drives up energy costs for all residents. Eliminating corporate tax credits would free up $250 million for investment in reliable and affordable energy infrastructure.

Q: Where is this bill in the legislative process?
A: The bill passed the New Jersey General Assembly in July 2026 and now moves to the Senate for consideration.

Q: How can I contact my state legislators about this bill?
A: Union County residents can contact their state senators and assembly members about their position on A5165. Assemblywoman Quijano represents Union County. Assemblyman Macurdy represents parts of Middlesex, Morris, Somerset, and Union counties.