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NYT: Meta used AI data centers to claim billions in R&E tax credits

financeSep 30, 202633232

The New York Times reports that Meta classified its A.I. data centers as "experimental" or "pilot models" to qualify expensive chips and supplies for an 1980s-era research and experimentation tax credit, allowing the company to claim roughly $4 billion in federal R&E tax credits. Meta told the IRS that the data centers were experimental and could fail, an argument the company used to treat capitalized equipment purchases as deductible research expenditures. Meta’s own accountants told the paper the approach is aggressive and risky, and the NYT notes the company acknowledged in filings that the strategy could leave investors exposed to large losses. Outside research cited in coverage finds AI data centers often collect large tax breaks relative to permanent jobs created, a point raised by watchdog groups. If the IRS does not challenge Meta’s classifications, the company will keep the credits; if the agency contests them the company faces potential disputes, repayment, or litigation.

LiveSquawk
@livesquawknews.bsky.social

Meta Avoids Billions In Federal Taxes By Classifying Its Data Centres As Experimental - NYT www.nytimes.com/2026/09/30/t...

1285h ago
Quoting this
Sleepin Dogo3

So, is this why all these guys call there data centers "labs?" For tax reasons? Sleazy...

emptywheel
@emptywheel.bsky.social

If you didn't already hate Meta, Mark Zuckerburg, and data centers, Meta is using the latter to cheat on their taxes. www.nytimes.com/2026/09/30/t...

322h ago
Jesse Eisinger
@jeisinger.bsky.social

Americans hate data centers. And they are paying for them through Meta’s tax dodging. It’s a good bet that Trump broke the IRS so badly, they’ll get away with it. Excellent piece from @kashhill.bsky.social, @jessedrucker.bsky.social et al: www.nytimes.com/2026/09/30/t...

283h ago
Andrew Levesque
@andrewlevesque.bsky.social

dissentmagazine.org/online_artic... Tech companies like Meta want us to believe that the AI boom is inevitable, and we all might as well get on board. But I’m a nurse, and my job is to advocate for my patients. Even without these new data centers, Louisiana has seen enough death and destruction….

8Yesterday
David Wessel
@davidmwessel.bsky.social

Some first-class reporting here: Meta shaved $4 billion of its tax bill last year by claiming data centers are experimental and qualify for R&E tax credit. www.nytimes.com/2026/09/30/t...

63h ago
Elizabeth
@underthesea62.bsky.social

Pedo47 just claimed Meta is giving $50k to every teacher in Louisiana for allowing a data centers to be built there. LA teachers let me know when that happens will you?

617h ago
FinTwitter
@fintwitter.bsky.social

Meta told IRS data centers are experimental, could fail - NYT

55h ago
jnotestein.bsky.social
@jnotestein.bsky.social

How Meta Uses A.I. Data Centers to Avoid Billions in Federal Taxes www.nytimes.com/2026/09/30/t...

13h ago
Jonah Blank
@jonahblank.bsky.social

Need another reason to hate data centers? ♦️Mark Zuckerberg is using his to avoid paying taxes: www.nytimes.com/2026/09/30/t...

22h ago
MondoAB
@mondoab.bsky.social

"Meta data centers are largely controlled and managed remotely through software orchestration, but they still require a physical, on-site workforce for hardware maintenance and local operations." Jobs! 😂

5Yesterday
Martin Grasdal 🍁2

I've been in a number of datacentres over my career in IT. They are largely empty, inhospitable places that employ few staff. Security, custodial, and some "remote hands". The latter act as proxies when customers need to physically add, remove, or configure hardware.

Calgary Canuck2

There's not much todays robots can't do but in the very near future the robots will be maintaining other robots and that will be it for jobs.

mellowcanuck.bsky.social1

Basically once everything is built they will keep one IT guy on site lay 90% off and rehire $18.00 an hour temps for hardware upgrades.

Toots
@ndcatlady.bsky.social

Tax the billionaires now. Close these loopholes and claw back the money. I am so sick and tired of Zuckerberg and the 5 or so other guys avoiding paying what should be their fair share. www.nytimes.com/2026/09/30/t...

13h ago
debra-mathews.bsky.social
@debra-mathews.bsky.social

For tax purposes, the Meta classifies its enormous data centers as “pilot models.” Under an 80s-era tax credit, companies can get a rebate for supplies being tested in an experimental effort. Meta is claiming that the costly AI computer chips it buys are entitled to a taxpayer-provided discount. 🎁

12h ago
Cavcdr66
@cavcdr66.bsky.social

What? Zuckerberg trying to cheat and avoid taxes? Say it ain’t so…. www.nytimes.com/2026/09/30/t...

2h ago
tkillion.bsky.social
@tkillion.bsky.social

"when Meta files its taxes...It claims that its A.I. data centers are a giant experiment that could fail...."

2h ago
John Reeves
@reevesjw.bsky.social

Meta is saving billions of dollars by aggressively using tax credits to build data centers. Zuckerberg gets even richer. What does the American taxpayer get in return?

2h ago
1 source
nytimes.comHow Meta Uses A.I. Data Centers to Avoid Billions in Federal Taxes

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