The "End Data Center Tax Credits Act" empowers the Board of Public Utilities (BPU) to issue tax credits for energy storage projects and introduces a temporary gross income tax credit for qualifying residential ratepayers. The bill reduces the tax credits available under the Next New Jersey Program from $500 million to $250 million, while establishing a new allocation of up to $250 million specifically for the act, with a maximum of $125 million earmarked for energy storage initiatives. The overall cap for tax credits across various programs is set at $11.5 billion over nine years, with $2.5 billion reserved for transformative projects under the Aspire Program.

Additionally, the legislation outlines a framework for tax credits for studio partners and film-lease production companies, with $250 million allocated for fiscal years 2023 and 2024, and $300 million for fiscal year 2025. It establishes new definitions for energy storage projects and mandates the BPU to procure and provide incentive awards for transmission-scale energy storage systems, aiming for at least 1,000 MW AC in installed capacity by June 30, 2026. The bill also introduces a one-time gross income tax credit of $100 for low-income residential electric customers and allows for the transfer of tax credits among developers and taxpayers, ensuring that any unclaimed credits are redirected to further support energy storage projects.

Statutes affected:
Introduced: 34:1B-362, 48:3-121.2, 48:3-121.3