At least 88 of America’s largest and most profitable corporations paid zero federal income tax in 2025 despite collectively reporting more than $105 billion in US pretax profits, according to a report by the Institute on Taxation and Economic Policy (ITEP) published in June 2026. The same 88 companies spent nearly $852 million on lobbying and campaign contributions over the past three election cycles, a figure that critics say illustrates the direct return on investment that political spending generates in the form of tax code provisions.

At the statutory corporate tax rate of 21 percent, these companies would have owed a collective $22.1 billion. Instead, they received $4.7 billion in total tax rebates, producing a swing of $26.7 billion from what the tax code nominally requires.

How Companies Legally Pay Zero Tax

None of the 88 companies cited in the ITEP report engaged in illegal tax evasion. All used legal provisions written into the US tax code, many of which were created or expanded through lobbying by the same companies that benefit from them.

Accelerated depreciation is the most widely used provision. It allows companies to deduct the cost of equipment and infrastructure faster than the asset actually wears out, reducing taxable income in the short term. The ITEP report found that the 88 companies reduced their 2025 taxes by at least $4.4 billion using the accelerated research expensing provision alone.

Stock-based compensation deductions, carried-forward losses from prior years, tax credits for R&D, and foreign tax credits are among the other provisions that reduce effective rates to zero or below for companies with aggressive tax departments.

The Lobbying Connection

Spending Category	Amount	Period
Total lobbying spending (88 companies)	$712 million	Last 3 election cycles (2020-2024)
Campaign contributions (88 companies)	$140 million	Last 3 election cycles (2020-2024)
Total political spending	$852 million	2020-2024
Federal income tax paid (2025)	$0 (net rebates of $4.7B)	2025 fiscal year
Tax break vs. statutory rate	$26.7 billion	2025 fiscal year

Which Industries Are Represented

ITEP’s report covers companies across sectors including technology, utilities, financial services, manufacturing, retail, and real estate. No single industry dominates the list, which reflects the broad reach of the tax provisions involved. Utilities benefit heavily from accelerated depreciation on infrastructure. Technology companies benefit from R&D credits and stock compensation deductions. Financial companies use loss carryforwards and investment credits.

According to ITEP, the companies that paid zero tax are not struggling businesses using legitimate loss provisions. They are profitable companies, collectively generating $105 billion in US pretax income, that reduced their tax liability to zero through the strategic use of provisions designed specifically to benefit their business models.

Political Context

The ITEP report arrived as Congress debates extending the Tax Cuts and Jobs Act provisions set to expire in late 2026. Corporate lobbyists are pushing for permanent extension of provisions including bonus depreciation and the research expensing rules that feature heavily in the zero-tax analysis.

According to Common Dreams, progressive budget advocates have used the ITEP findings to argue that corporate tax reform should be a condition of any extension package, while business groups argue that the provisions serve legitimate economic purposes by incentivizing investment and job creation.

Warren Buffett has separately stated that 800 US companies could eliminate their income tax if the tax code allowed it, framing the issue as systemic rather than a function of individual corporate behavior.

Frequently Asked Questions

Which companies paid no federal income tax in 2025?

ITEP identified at least 88 large profitable corporations that paid zero federal income tax in 2025 despite $105 billion in combined US pretax profits. The full list spans technology, utilities, financial services, manufacturing, and retail. ITEP’s report names individual companies; the full list is available at their website at itep.org.

Is it legal for corporations to pay zero income tax?

Yes. All 88 companies cited in the ITEP report used legal tax provisions, not evasion. The most significant provisions include accelerated depreciation, research expensing deductions, stock-based compensation deductions, R&D tax credits, and loss carryforwards. These provisions were created and maintained through legislative processes that corporate lobbying has significantly shaped.

How much did these companies spend on lobbying?

The 88 corporations that paid zero federal income tax in 2025 spent a combined $852 million on lobbying ($712 million) and campaign contributions ($140 million) over the 2020, 2022, and 2024 election cycles, according to ITEP’s analysis of public disclosure data.