Meta told the IRS its AI data centers are experimental to shave $6 billion off its tax bill
- Meta has used the experimental designation for AI data centers to save billions in tax credits
- The designation is not allowed to be used for standard business operations
- Meta has labelled its AI data centers as 'pilot models' allowing the company to avoid some taxes on the AI chips that outfit its facilities
Meta has been caught in some hot water with the US Internal Revenue Service (IRS) over the classification of some of its AI data centers as ‘experimental’ facilities.
This designation allows companies to claim back some tax credits on the equipment it purchases for an experiment, as it could fail and leave the company out of pocket. These tax credits are an incentive for companies to innovate and there are strict rules around claiming them for standard business operations.
According to the New York Times, Meta’s designation of some of its campuses as experimental - with...
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