Meta has claimed billions of dollars in research tax credits for equipment used at its artificial intelligence data centers by treating portions of the facilities as experimental projects, a tax strategy that could draw scrutiny from the IRS.

Meta began claiming the research tax credit for its AI data centers in 2024, sharply increasing the tax savings it received from the program. Company filings show its research tax credit reduced its tax bill by $2 billion that year and $3.9 billion in 2025, compared with $700 million in 2023.

The research tax credit was created in 1981 to encourage companies to invest in research and development. Generally, the credit applies to expenses connected to experimentation and efforts to resolve technical uncertainty rather than the routine costs of operating a business.

Meta has classified some computer chips and other equipment purchased for its AI data centers as supplies used in what it calls “pilot models.” The approach has raised questions because many of the chips and other components are commercially available products used to operate large-scale computing facilities.

Tax experts cited in the reporting questioned whether Meta can legitimately claim the credit across all of the equipment used at its data centers. Andre Shevchuck, a partner at advisory firm BPM who specializes in the research tax credit, described the application as unusual.

The issue has also drawn questions within Meta's own finance department. The company's filings warn investors that some of its tax savings could ultimately be overturned.

Meta's reserve for uncertain tax benefits has increased 45% over two years to $18.74 billion. The company cited “uncertainties with our research tax credits” as one of the leading factors behind the increase.

Meta spokesman Andy Stone defended the company's tax treatment, saying Meta is using incentives established by Congress. He pointed to the company's research and development spending, saying it invested $200 billion in R&D over the past five years, including $57 billion during the last year.

Stone also said Meta's disclosures about uncertain tax benefits are required accounting measures and encompass “many different types of uncertainties.”

A 2021 federal court ruling involving a shipbuilder illustrates the requirements companies can face when claiming the research credit. The court found that simply developing new types of vessels was not enough. The company had to identify specific technical uncertainties and demonstrate that it conducted experimentation to resolve them.

Meta has not explained in detail what makes its AI data centers experimental or why the chips and computing equipment used in them qualify for the research credit. The company's filings acknowledge the uncertainty surrounding its tax position, leaving the treatment open to potential scrutiny by tax authorities.