Meta reportedly classifies AI data-center equipment as experimental for tax credits

Meta's research tax credits reportedly rose from roughly $700 million in 2023 to $3.9 billion in 2025 as it classified portions of its AI data-center expansion as experimental "pilot models," according to New York Times reporting relayed by Yahoo Finance. The strategy separates chips used for AI training from those in conventional facilities and treats server-rack layouts and networking configurations as qualified research. Tax specialists question whether commercial hardware and large-scale infrastructure satisfy the credit's requirements. Eligibility requires identifying technical uncertainty, evaluating alternatives and conducting experiments to resolve it; commercially available equipment must be tied directly to that process.