S 4390 New Jersey Senate · 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," aims to restructure how New Jersey distributes tax credits for economic development and energy projects. It establishes a new nine-year spending cap of $11.5 billion for various incentive programs, which limits the total amount of money available annually for initiatives like historic preservation, brownfields redevelopment, and manufacturing. To support energy goals, the legislation authorizes the Board of Public Utilities to issue tax credits specifically for energy storage projects and creates a temporary income tax credit for certain residential utility customers. Additionally, it sets specific annual and total dollar limits for existing programs such as the Next New Jersey Program and the Innovation Evergreen Act, while reserving $2.5 billion for transformative projects under the Aspire Program.

Bill status signed all 5 stages cleared

Introduction

Jun 2026

Committee Review

Jun 2026

Senate Passage

Jun 2026

General Assembly Passage

Jun 2026

Signed into Law

Aug 2026

Introduced Jun 1, 2026 Signed Aug 27, 2026

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What changed between versions

Introduced → Reprint · 5 edits

MODERATE

The First Reprint of S4390 dramatically narrows the bill's scope by removing all provisions related to energy storage tax credits and a one-time residential ratepayer income tax credit. The bill now only reduces the tax credit cap available under the Next New Jersey Program by $250 million, without reallocating those funds to any other purpose. This represents a significant simplification from a multi-part act into a straightforward cap reduction.

Scope change

The bill was reduced from a comprehensive act with three components (energy storage tax credits, residential ratepayer income tax credits, and Next NJ cap reduction) to a single-purpose bill that only reduces the Next New Jersey Program tax credit cap by $250 million without specifying where those funds go.

SCOPE

All provisions authorizing the Board of Public Utilities to issue tax credits for energy storage projects (up to $125 million) were removed, including definitions, program structure, and rulemaking authority (former Sections 2-7).

The act's title description 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.'

ELIGIBILITY

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

FISCAL

The reallocation mechanism that would have directed $250 million from the Next New Jersey Program to energy storage and residential credits (paragraph (n) of Section 1(b)(1)) was struck. The $250 million is still removed from Next NJ but is no longer earmarked for any specific use.

TECHNICAL

Additional Assembly sponsors (Macurdy, Singh, Quijano) and co-sponsors were added, reflecting broader legislative support for the narrowed version.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Lower · Passed

Passed Assembly (Passed Both Houses) (74-4-0)

lower

Jun 30, 2026

Upper · Passed

Passed by the Senate (35-4)

upper

Jun 22, 2026

Committee

Transferred to Senate Budget and Appropriations Committee

upper

Jun 1, 2026

Introduced

Introduced in the Senate, Referred to Senate Economic Growth Committee

upper

6 primary · 5 co-sponsors