Meta reduced its 2025 tax bill by $3.9 billion through research tax credits, up from $2 billion in 2024 and $700 million in 2023, according to its securities filings. A New York Times investigation published Sept. 30 said Meta classifies its AI data centers as "pilot models" for tax purposes and claims the federal credit on Nvidia chips inside them. The approach, which the Times said began in late 2024, is under scrutiny because the research credit generally applies to work addressing technical uncertainties, while the IRS has previously challenged claims involving off-the-shelf equipment. Meta’s tax positions are also tied to ongoing disputes over executive compensation and foreign-subsidiary transactions. Its gross unrecognized tax benefits reached $18.74 billion as of June 30, up 45% from $12.91 billion two years earlier. Meta says the figure primarily reflects uncertainties involving research credits and foreign-subsidiary deals, and expects to add to it. The company’s next update is due in its October third-quarter report.