Meta classifies AI data centers as 'pilot models' to claim federal R&D tax credit
The New York Times reports Meta has used a federal research tax credit to deduct billions by labeling its AI data centers as "pilot models" and Nvidia chips as experimental materials, saving $3.9 billion in 2025 (up from $2.0 billion in 2024 and $700 million in 2023). EY approved the approach and has pitched it to others, while Meta’s SEC filings warn the practice is legally risky and tax reserves rose 45% to $18.74 billion.