Rushed AI Tax Credit Bill Has High Cost, Few Safeguards

Lawmakers are fast-tracking a new tax credit program for Artificial Intelligence businesses without the meaningful safeguards.

Published on Jun 26, 2024 in Tax and Budget

Today the legislative budget committees advanced a brand new $500 million tax credit package (A4558/S3432) for artificial intelligence (AI) businesses. These credits would not be required to go towards businesses in economically distressed areas nor would they include more than minimal safeguards against the substantial environmental costs associated with running AI systems. In response to the fast-tracked legislation advancing through committee, New Jersey Policy Perspective (NJPP) issues the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Any program that costs this much should be carefully considered before it’s voted on, especially when we’re talking about subsidizing a new industry with major red flags. Artificial intelligence raises serious ethical and environmental concerns, and there’s little to no evidence that this field will create long-term jobs or economic growth for the state. This bill lacks safeguards to ensure it actually benefits New Jersey residents, and this rushed legislative process shuts down any chance to debate or even discuss the merits of the program.

“With the state facing a structural deficit, now is not the time to use public dollars to subsidize private profits in the tech industry.”

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