New Jersey Enacts $500 Million Tax Break for AI Data Centers

New Jersey is freeing up hundreds of millions in tax credits for artificial intelligence companies that create new jobs and investment in the state, as elected officials across the nation look for new ways to attract AI companies.

Gov. Phil Murphy (D) signed legislation Thursday allowing the state to reallocate up to $500 million in credits from two tax incentive programs, Aspire and Emerge, to AI companies that build data centers or other facilities in the state. Both incentive programs were created in 2021 as part of the state’s $14 billion economic recovery law.

To qualify, companies have to ...