Next NJ Program – AI: Now Accepting Applications for up to $250M in Tax Credits
The New Jersey Economic Development Authority (NJEDA) is now accepting applications for its Next New Jersey Program – AI, a major incentive initiative offering up to $500 million in tax credits to companies advancing artificial intelligence in New Jersey.
Created to accelerate AI investment and innovation, the program is part of a broader initiative to make New Jersey a national hub for emerging technology, supporting everything from research and development to infrastructure and strategic partnerships with research institutions.
What Is the Next New Jersey Program – AI
Signed into law in July 2024, the Next NJ Program – AI provides substantial tax credits to businesses that make qualifying investments in AI-driven technologies or large-scale data centers. The program is designed to attract companies that are pushing the boundaries of machine learning, natural language processing, and cognitive computing, thereby laying the groundwork for breakthroughs that impact industries far beyond technology.
Why It Matters
This program goes beyond incentives. It’s a long-term strategy to bring together world-class talent, infrastructure, and private-sector leadership. Companies that take advantage of this opportunity gain not just financial support but a seat at the table in shaping the state’s AI ecosystem. Those that qualify could receive up to $250 million in credits over five years.
The Requirements
To be eligible for the program, a business or division must be primarily engaged in the AI sector and meet the following criteria:
- 10-year commitment to operate in New Jersey
- Minimum $100 million capital investment
- At least 100 new full-time jobs created
- All new jobs must pay at least 120% of the county median salary
- Over 50% of employees must work in AI-related activities, or more than 50% of revenue must come from AI-related activities
- Must collaborate with a New Jersey public or private research university, tech startup, or both
Tax credit awards are structured to ensure alignment with the company’s long-term investment. The total award is the lesser of:
- 0.1% of total capital investment × number of new full-time jobs
- 25% of total capital investment
- $250 million
Where TZG Comes In
At The Zita Group, we help clients navigate emerging policies, such as the Next NJ Program – AI. Whether you’re a startup or an established tech company, our team is ready to support you through every step of the process.
Here’s how we can help:
- Identify partnership opportunities with research institutions or innovation hubs.
- Position your company for long-term success in New Jersey’s AI ecosystem.
- Connect with key decision-makers to elevate your concerns or questions.
- Monitor legislative and regulatory trends that impact AI, energy use and data privacy.
Applications are open now. Visit https://www.njeda.gov/nextnjai/ to learn more or book a call to explore how your business can take advantage of this opportunity.
About The Zita Group
The Zita Group is a woman-owned government and public affairs firm, both founded and led by Patrizia “Trish” Zita. Our bipartisan, experienced team of strategic consultants is widely respected by elected, appointed and government officials of both parties across New Jersey’s political landscape. We provide our clients unique insights into the decision-making process at the highest levels. We bring to bear credible working relationships with executive branch officials, legislators, and staff. Our team’s effectiveness has been demonstrated again and again by the results we achieve for our clients.
