Meta Platforms Inc. reportedly saved $2 billion in taxes in 2024 and another $3.9 billion in 2025 by classifying its artificial intelligence data centers as “pilot models,” The New York Times reported on Wednesday, citing people familiar with the matter. According to the report, the tech giant used the U.S. Research and Experimentation Tax Credit, a program introduced in 1981 to encourage technological innovation and strengthen the country’s competitiveness.
The tax credit is generally intended to support companies that invest in research and development. Meta reportedly applied it to the construction and development of its AI data centers, arguing that the facilities were part of experimental projects. However, the company’s own financial filings acknowledge that some of these tax benefits could later be challenged or reversed by the U.S.
Internal Revenue Service (IRS). Meta has cited “uncertainties with our research tax credits” in its filings. The New York Times also reported that Meta did not respond to questions about what specifically made its AI data centers experimental enough to qualify for the tax credit.
The case highlights how the rapid expansion of artificial intelligence is creating new challenges for tax authorities. AI data centers require enormous amounts of computing power, electricity, and investment, raising questions about how governments should classify such infrastructure under tax rules that were created decades before modern AI existed. If the reported figures are accurate, Meta’s tax savings over the two years would total approximately $5.9 billion, making the issue potentially significant for both the company and U.S. tax authorities.
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