Elizabeth Warren Probes Big Tech AI Tax Deductions

Senator Elizabeth Warren and Senate Democrats Tina Smith and Jeff Merkley have launched an inquiry into the tax practices of Meta, Alphabet, Amazon, and Microsoft. The lawmakers sent letters to the companies demanding detailed information on tax deductions claimed for artificial intelligence and data center development.

The probe focuses on the utilization of tax breaks from the 2025 spending package authorized by President Donald Trump. The investigation follows reports that corporate tax payments fell by 25 percent this year despite increasing revenues. Specifically, the senators noted that Meta's federal income tax dropped from $9.6 billion in 2024 to $2.8 billion in 2025, while Microsoft's federal income tax expense fell by over $11 billion between fiscal years 2025 and 2026.

Lawmakers are also examining the relationship between these subsidies and corporate political spending. The request for information includes details on lobbying efforts and $1 million contributions made to the inauguration of Donald Trump. The companies have until October 12 to respond to the demands.