A 5165 New Jersey General Assembly · 2026-2027 Regular Session

"End Data Center Tax Credits Act"; reduces tax credits available for Next New Jersey Program.*

This bill, titled the "End Data Center Tax Credits Act," sets a combined nine-year spending cap of $11.5 billion for various state tax credit programs, including those for economic recovery, arts, and manufacturing. It specifically reduces the amount of credits available under the Next New Jersey Program and directs $200 million of those credits to a housing agency through competitive auctions. Additionally, the legislation authorizes the Board of Public Utilities to issue tax credits for energy storage projects and creates a temporary income tax credit for certain residential electricity customers.

Bill status in committee 1 of 4 stages cleared

Introduction

Jun 2026

Committee Review

Floor Vote

Governor

Introduced Jun 1, 2026 Last action Jun 30, 2026

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What changed between versions

Introduced → Reprint · 6 edits

MODERATE

The Assembly State and Local Government Committee dramatically narrowed this bill from its introduced version. Originally, the bill reduced Next New Jersey Program tax credits by $250 million AND reallocated that money to fund BPU energy storage tax credits (up to $125 million) and a one-time $100 gross income tax credit for lower-income residential electric customers. In the reprint, all energy storage and ratepayer credit provisions were struck, leaving only the reduction in Next New Jersey Program availability.

Scope change

The bill was reduced from a multi-part measure that both cut Next New Jersey Program funding and created new energy storage tax credits plus a residential ratepayer tax credit, to a narrower bill that only reduces the availability of tax credits under the Next New Jersey Program. All reallocation and new incentive provisions were struck in committee.

SCOPE

All provisions authorizing the Board of Public Utilities to award tax credits for energy storage projects (up to $125 million) were struck from the bill. This included definitions, eligibility criteria, application requirements, and the BPU procurement program with 1,000 MW AC targets.

The bill's short title and act description were changed from 'concerning tax credit incentives for energy storage and cost relief to ratepayers' to simply 'reducing the availability of tax credits for the Next New Jersey Program,' reflecting the narrowed purpose.

ELIGIBILITY

The one-time $100 gross income tax credit for residential electric customers with gross income of $55,000 or less was entirely removed from the bill.

FISCAL

The $250 million reallocation mechanism from Next New Jersey Program to energy storage and ratepayer credits (subparagraph (n) of section 98 of P.L.2020, c.156) was struck, along with the $125 million sub-allocation for energy storage.

TECHNICAL

Tax credit transfer certificate provisions allowing recipients to sell or assign credits were removed, along with BPU emergency rulemaking authority for implementing the energy storage program.

Co-sponsors (Assemblymen Bailey, Walker and Assemblywoman Brennan) were added to the bill header.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 28, 2026

Lower · Passed

Reported out of Assembly Committee, 2nd Reading

lower

Jun 23, 2026

Committee

Reported out of Asm. Comm. with Amendments, and Referred to Assembly Budget Committee

lower

Jun 23, 2026

Committee

Transferred to Assembly State and Local Government Committee

lower

Jun 1, 2026

Introduced

Introduced, Referred to Assembly Science, Innovation and Technology Committee

lower

3 primary · 2 co-sponsors