The New Jersey Economic Development Authority (NJEDA) Board has approved two programs aimed at advancing the state's position in the field of artificial intelligence. The Next New Jersey Program – AI and the AI Innovation Challenge Administration Grant Program are designed to encourage private investment and promote collaboration between citizens and government in AI innovation.
Governor Phil Murphy highlighted the potential economic benefits, stating, "AI presents a tremendous economic opportunity for New Jersey, poised to create good-paying jobs, catalyze new discoveries, grow our start-up community, and foster long-term economic growth." NJEDA Chief Executive Officer Tim Sullivan added that these initiatives will support entrepreneurs and businesses in investing in AI.
The Next New Jersey Program – AI will offer tax credits to eligible businesses that invest in large-scale AI data centers or engage in AI-related activities. To qualify, a business must commit to creating at least 100 new full-time jobs and meet a minimum capital investment of $100 million. The program also requires collaboration with a New Jersey-based research entity.
The AI Innovation Challenge Administration Grant Program will provide $3.8 million in grant funding through a competitive process. An appointed Administrator will manage an AI Challenge across the state, awarding sub-grants to winners who develop innovative software solutions addressing social and public needs.
Applications for this grant program will open following a Notice of Funding Availability on the NJEDA’s website. Prospective applicants are encouraged to begin their business registration and tax clearance processes early.
These initiatives align with Governor Murphy's ongoing efforts to expand resources for the state's AI sector. In partnership with Princeton University, Microsoft, and CoreWeave, an AI Hub was announced as part of this broader strategy. Additionally, an AI cohort within the New Jersey Innovation Fellows Program (NJIF) is set to launch next year.
