Amazon, Meta, Alphabet Report Record Tax Bill Drops Amid AI Spending and New Tax Law (AMZN, META, GOOG)

Big Tech companies report record drops in 2025 federal tax bills, down from 2024, driven by new tax provisions enacted in 2024 that expand depreciation, R&D, and interest expense deductions, including a 100% expensing rule for factory investments. Amazon's tax liability fell to $1.2B from $9B; Meta's to $2.8B from $9.6B; Alphabet's combined federal and state bill to $13.8B from $21.1B. Deferred taxes for 2025 totaled $11B (Amazon), $18B (Meta), and $8B (Alphabet), with Amazon's full-year payments expected at $2.75B. Domestic profits rose: Amazon to $90B (+40% YoY), Alphabet to $143.6B (+32% YoY), Meta to $79.6B (+20% YoY). The companies attribute savings to AI and infrastructure investments, but the Tax Foundation estimates collectively about $50B in avoided federal taxes under the 21% statutory rate for four major companies.