Warren Probes AI Tax Breaks for Tech Giants
US Senator Elizabeth Warren is investigating tax breaks given to tech giants Amazon, Alphabet (Google), Meta (Facebook), and Microsoft under the One Big Beautiful Bill Act of 2025. The law aimed to encourage investment by allowing companies to write off qualifying business investments immediately. However, lawmakers are questioning whether this provision disproportionately benefits large AI spenders like the four companies.
A review of SEC filings by Warren's office shows that these companies have seen significant declines in their tax expenses despite increased profits. For example, Microsoft's federal income-tax expense fell by over $11 billion between fiscal years 2025 and 2026, while Alphabet's combined current federal and state income-tax expense declined by more than $7 billion.
The Institute on Taxation and Economic Policy estimated that these six major companies received an estimated combined $83 billion in federal tax benefits in 2025. Warren is demanding that the CEOs of Amazon, Alphabet, Meta, and Microsoft provide details on their deductions, credits, and lobbying efforts related to AI development by October 11, 2026.