Meta Platforms has reportedly classified some of its AI data centers as pilot models to claim federal research and experimentation tax credits, significantly reducing its tax bill.
The company claimed about $2 billion in credits in 2024. It claimed $3.9 billion in 2025.
The strategy lets Meta treat expensive AI chips from suppliers such as Nvidia as research supplies. The credits are intended to encourage innovation, not subsidize standard business operations.
The practice has reportedly made Meta the largest public beneficiary of this tax credit. The classification remains a gray area, and Meta has disclosed in securities filings that the IRS could challenge and overturn the tax benefits. The company has substantially increased its reserve for uncertain tax positions.