In late July, Governor Phil Murphy signed A4558/S342, officially establishing the Next New Jersey Program (Next NJ), aimed at spurring large-scale investment from AI and AI-related industries, including the AI data center industry, in the State of New Jersey. Under Next NJ, businesses would be eligible for tax credits following the submission (and approval) of an application to the New Jersey Economic Development Authority (NJEDA).
To be eligible under the Next NJ program, eligible businesses must meet certain capital investment and employment thresholds, including the following:
- A minimum capital investment of $100,000,000 at the project location.
- The creation of at least 100 new full-time jobs.
Under the Next NJ program, the amount of tax credits allowed for a particular project would equal the lesser of:
- The product of 0.1 percent of the eligible business’s total capital investment multiplied by the number of new full-time jobs;
- 25 percent of the eligible business’s total capital investment; or
- $250 million.
While the program will not be the right fit for every business seeking to investment capital into AI infrastructure in the State of New Jersey, it will be helpful for large-scale AI-related projects, including major data center developments throughout New Jersey.
For more information, please contact:
Chris J. Murphy
Partner, Chair of Tax Credits & Incentives Practice
Phone: (973) 723-7036
Email: cmurphy@murphyllp.com
Brendan Pytka
Director of Tax Credits & Incentives
Phone: (862) 418-3702
Email: bpytka@murphyllp.com
Murphy Schiller & Wilkes LLP (MSW) is a boutique law firm servicing the commercial real estate and construction industries. Headquartered in Newark, New Jersey, the firm represents a wide range of clients, including institutional, publicly traded real estate companies, international and regional lenders, national contractors and subcontractors, and family offices. The firm has been ranked as a top law firm by both Chambers & Partners and U.S. News & World Report.