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New Jersey’s $500 Million Bid to Become an AI Epicenter


The Garden State has enacted a hefty new tax credit specifically for AI businesses. But tax incentives—particularly around data centers—haven’t always created large numbers of jobs.

“This is a growing, very healthy industry that does need any public support to do its business,” says Kasia Tarczynska, senior research analyst at Good Jobs First, a US national policy resource center that promotes corporate and government accountability in economic development. “There’s just this history of [tax incentive] deals building up the necessary infrastructure for these tech firms and not paying off for the taxpayer,” says Pat Garofalo, director of state and local policy at the American Economic Liberties Project, a nonprofit organization that calls for government accountability. In May, Georgia’s governor vetoed a bill that would have halted tax breaks for two years as the state studied the energy impact of the centers, which are rapidly expanding near Atlanta.

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