New Jersey advances bill to cut AI data center tax credits
New Jersey moved to reclaim $250 million in unused AI data-center credits as Vineland residents keep fighting a humming DataOne site on South Lincoln Avenue.
The Assembly Budget Committee unanimously advanced the End Data Center Tax Credits Act on June 29, putting New Jersey closer to reclaiming $250 million in unused AI data-center incentives just before the June 30 budget deadline. The move came after the Assembly State and Local Government Committee approved A5165 on June 23 and the Senate Budget and Appropriations Committee advanced the same legislation, S4390, on June 24.
A5165 would cut $250 million from the tax credits available under the Next New Jersey Program and send that money back to the New Jersey Economic Development Authority. It would also authorize the Board of Public Utilities to issue tax credits for energy storage projects and create a temporary gross income tax credit for certain residential ratepayers. Under the current AI program, a single project can receive up to $250 million, and the broader program has $500 million available for AI and data-center projects.
In February, New Jersey approved a $250 million tax break for an AI data center even as electric bills and affordability worries were already rising. Sponsors Andrew Macurdy, Balvir Singh and Joe Cryan are arguing the money should be redirected to utility cost relief and energy production instead of subsidizing power-hungry facilities.
In Cumberland County, the debate has become far more concrete. Vineland residents have been complaining about a persistent humming they blame on a DataOne USA LLC facility on South Lincoln Avenue. Neighbors say the noise is disrupting sleep and outdoor use, and two residents have filed suit over the issue. DataOne said it was aware of the lawsuit, had been working with local stakeholders to address concerns and could not comment further because of the litigation.
The Cumberland County Department of Health has also been measuring sound levels in the area. Governor Mikie Sherrill’s May 27 statewide data-center plan called for public reporting of energy and water use and new standards on noise, light and pollution.
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