FAR and DFARS › FAR Part 29: Taxes › Subpart 29.2
FAR 29.203 Other Federal tax exemptions.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section states that the United States is exempt from two federal taxes: the communications excise tax for supplies and services used exclusively by the United States, and the federal highway vehicle users tax, whether the vehicle is owned or leased by the United States. It matters to contractors because it identifies federal tax exemptions that apply to certain government purchases.
Applies to: United States Government purchases of communications supplies and services, and highway vehicles
Key terms: communications excise tax · federal highway vehicle users tax · exclusive use of the United States · owned or leased by the United States
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Pursuant to 26 U.S.C. 4293, the Secretary of the Treasury has exempted the United States from the communications excise tax imposed in 26 U.S.C. 4251, when the supplies and services are for the exclusive use of the United States. (Secretarial Authorization, June 20, 1947, Internal Revenue Cumulative Bulletin, 1947-1, 205.)
(b) Pursuant to 26 U.S.C. 4483(b), the Secretary of the Treasury has exempted the United States from the federal highway vehicle users tax imposed in 26 U.S.C. 4481. The exemption applies whether the vehicle is owned or leased by the United States. (Secretarial Authorization, Internal Revenue Cumulative Bulletin, 1956-2, 1369.)
← 29.202 General exemptions. · 29.204 Federal excise tax on specific foreign contract payments. →
Rule changes for FAR Part 29
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 5, 24, and 29 ↗ · proposed 2026-06-23 · comments due 2026-07-23
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.