Meta classifies AI data centers as experiments to claim chip tax credits
Image: Primary Meta classifies its AI data centers as experimental "pilot models" to claim research tax credits on chips, The New York Times reported, citing people familiar with its operations and securities filings. The credit reduced Meta's taxes by $2bn in 2024 and $3.9bn in 2025.
The credit covers supplies used in experiments, while standard business operations do not qualify. EY signed off on Meta's approach and has pitched it to other companies. Meta's reserve for potentially challenged tax positions rose to $18.74bn from $12.9bn in two years, with uncertainty over research credits listed first among the factors. Meta declined to explain what made the data centers experimental.
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