Meta Claims Billions in Tax Credits by Labeling A.I. Data Centers Experimental
Updated
Updated · The New York Times · Sep 30
Meta Claims Billions in Tax Credits by Labeling A.I. Data Centers Experimental
3 articles · Updated · The New York Times · Sep 30
Summary
Meta has classified multibillion-dollar A.I. data centers as experimental “pilot models” on its tax filings, a move that lets it seek billions of dollars in federal research credits.
The strategy hinges on a 1980s tax break for supplies used in testing rather than routine operations, allowing Meta to treat expensive chips from suppliers including Nvidia as part of an experiment.
Four people familiar with the company’s operations said Meta presents the same A.I. build-out to investors as a successful growth engine even as it tells the IRS the projects could fail.
Meta’s own securities disclosures warn that billions in tax savings could be reversed because of “uncertainties with our research tax credits,” underscoring the legal risk of the approach.