An $8 billion Treasury break helped bring Meta’s tax rate to 2%. Now it has a week to answer senators about data center tax credits
Source: Fortune ·
Senators want Meta to explain why it claims a research credit on AI data centers. Meta says the facilities require real experimentation.
From the source
Meta’s filings this week were dominated by its new class of non-voting stock, which would let Mark Zuckerberg raise cash, including enough to pay for a potential California wealth tax without giving up control of the company. Meta says it needs the new shares to fund its AI ambitions: Management’s forecasts “showed the Company’s need to raise hundreds of billions of dollars over a period of several years beginning as early as fall 2026,” according to its information statement. While that news pertains to an individual’s potential tax bill, Meta’s quarterly report shows just how low the company’s tax bill might be. “Our effective tax rate for the nine months ended September 30, 2026 was 2%,” Meta said in the report, as compared to 21%, the statutory rate set into federal law. The company reported income before taxes of $53.5 billion for those nine months and a tax provision of $1.03 billion. By comparison, absent changes to its tax landscape, Meta says “we expect our fourth quarter…