New Jersey would tax certain AI computing to fund career support

AI computing providers would pay a 10 percent tax on covered processing value. Covered AI must substantially influence or replace human judgment at work and be commercially available, or being developed for that purpose, for some New Jersey business use. General-purpose software, standard databases, and basic rule-based automation without learning or adaptive features are excluded. The tax would begin on January 1 next following enactment.

New Jersey would set aside AI tax revenue to help affected workers choose and train for another career. Workers would qualify if AI ends their employment or is expected to make their jobs obsolete within 12 months. Lawmakers would need to approve spending from the fund. Money could also pay for support services for public high school students. The fund provisions would take effect on January 1 next following enactment.