AI companies are pouring billions of dollars into data centers, chips, and other infrastructure. Thanks to the “One Big Beautiful Bill Act” (OBBBA), they can also take advantage of expanded tax breaks for these business investments.
The result? Corporate federal income tax payments are dropping sharply, even as corporate profits stay strong.
According to reporting by Politico, federal corporate tax payments have fallen by about 25%, or roughly $96 billion, so far this year as companies make heavy investments in data centers, computer chips, power infrastructure, and other equipment used to build AI systems.
The tax incentives were not written specifically for AI. But the technology industry is among the biggest beneficiaries as companies such as Amazon, Google, and Microsoft race to build the infrastructure needed to expand AI.
For example, Meta reported $26.8 billion in net income in the first quarter of 2026. The company said $8 billion of that resulted from a one-time tax benefit tied to changes in the OBBBA.
Pennsylvania: AI, data centers, and corporate taxes
Data center developers have taken a major interest in Pennsylvania.
There are at least 100 data centers proposed throughout the commonwealth, although the majority of them are in the early stages of approval and have received local pushback.
Corporations doing business in the state are subject to Pennsylvania’s corporate income tax, as well as federal taxes. But many of the federal tax changes included in the OBBBA do not automatically apply to the state’s corporate tax.
In 2025, Pennsylvania enacted Act 45, which specifically separated the state’s Corporate Net Income Tax from business-friendly federal deductions in the OBBBA. This saved the state over $1 billion in revenue that would have been lost if federal provisions were followed.
Pennsylvania’s corporate net income tax rate is 7.49% for 2026 and is scheduled to continue declining until reaching 4.99% in 2031.
So while the federal government is absorbing the near-term revenue effects of the new deductions, Pennsylvania has taken steps to prevent some of those federal tax changes from automatically reducing state corporate tax collections.
What did Pennsylvania lawmakers do about it?
The OBBBA passed the US House in July 2025. Nine Pennsylvania Republicans voted in favor of the bill, including:
- Rob Bresnahan
- Ryan Mackenzie
- Dan Meuser
- Scott Perry
- Lloyd Smucker
- John Joyce
- Guy Reschenthaler
- Glenn Thompson
- Mike Kelly
In the Senate, Republican Dave McCormick voted for the bill, while Democratic Sen. John Fetterman voted against it.
McCormick said the bill would provide tax relief to Pennsylvania families and help strengthen the state’s economy.
