Policy2 hOctober 13, 2026, 13:45

Senate Report: Data Center Tax Breaks Cost Virginia $1.6B; Meta's Federal Tax Bill Fell 71%

A Senate Power and Profits investigation released October 9 quantified two subsidy channels for AI data centers: sales tax exemptions that drained $1.6 billion from Virginia's treasury in fiscal 2025, up 118% year over year, and bonus depreciation that cut Meta's federal income tax bill from $9.6 billion to $2.8 billion — a 71% drop — while profits stayed roughly flat. Senators Warren, Van Hollen and Blumenthal drew on responses from Amazon, Alphabet, Meta and Microsoft in a nearly yearlong probe.

Tech Times

Open source

Senate Report: Data Center Tax Breaks Cost Virginia $1.6B; Meta's Federal Tax Bill Fell 71%

Virginia forfeited $1.6B in sales tax revenue in fiscal 2025 — about 16 times its original projection
Meta's federal income tax bill fell from $9.6B to $2.8B (-71%) as profits held roughly flat
Hyperscaler capital expenditure is expected to reach $700B in 2026
US electric rates rose 7.1% in 2025, with some regions seeing increases above 25%

#Meta#Amazon#Google#Microsoft

Senate Report: Data Center Tax Breaks Cost Virginia $1.6B; Meta's Federal Tax Bill Fell 71%

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