SOUTH JERSEY (KYW Newsradio) — State subsidies earmarked for AI data centers could be clawed back after an Assembly committee advanced a bill to reclaim $250 million in tax credits.
The Assembly State and Local Government Committee advanced a bill that would put that money back into the general budget.
Peter Chen with the New Jersey Policy Perspective was among those in favor of the clawback.
“It is a good idea to scrutinize these programs more carefully,” he said. “We don’t want to be subsidizing billion-dollar corporations, especially if they are extracting value from the state and not putting back as much economic activity as they’re taking out.”
While Chen said the industry is extracting more value than it puts in, industry lobbyists pointed to the billions of dollars in tax revenue collected and nearly 200,000 jobs created as proof of value.
Jake Ramirez with the New Jersey Business and Industry Association was opposed, saying the industry doesn’t get enough credit for the value it brings, and removing the subsidies puts New Jersey at a competitive disadvantage.
“We see other states in the region not doing this,” he noted.
The bill advanced with committee approval and moves another step closer to a full vote.
Bill advanced out of committee, moves toward a full vote
Bill advanced out of committee, moves toward a full vote
