Meta books AI data centers as experiments, saving $3.9 billion in taxes in one year
Meta claims the R&D tax credit by classifying data centers as pilot assets; savings have grown to more than five times their 2023 level while tax-contingency risk builds.
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Meta files its AI data centers as experimental assets to claim the US federal research tax credit, saving $3.9 billion in 2025.
According to the New York Times, the credit dates back to a 1981 law. Meta's savings were only $700 million in 2023 and rose to $2 billion in 2024, making it the biggest beneficiary among publicly traded companies. For tax purposes, the data centers are registered as "pilot models" and Nvidia chips as experimental materials.
That framing conflicts with what Meta tells investors: CEO Mark Zuckerberg said in January 2025 that these data centers would "drive our core products and business." Meta's own accountants see legal risk, and filings with the SEC warn the savings could be clawed back; reserves for uncertain tax positions jumped 45 percent to $18.74 billion. Auditor EY approved the arrangement, helped design it, and is now pitching it to other companies.