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FAR and DFARS › FAR Part 29: Taxes › Subpart 29.3

FAR 29.302 Application of State and local taxes to the Government.

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 explains that Federal Government purchases and leases are generally immune from State and local taxes, but whether a specific purchase is immune is a legal question requiring agency counsel advice. It also directs executive agencies to take maximum advantage of available tax exemptions when economically feasible, and allows the contracting officer to provide evidence such as Standard Form 1094 to establish the Government is making the purchase.

Applies to: Executive agencies and contracting officers making purchases or leases

What it requires

  • Take maximum advantage of all exemptions from State and local taxation that may be available when economically feasible
  • If appropriate, provide Standard Form 1094, U.S. Tax Exemption Form, or other evidence listed in 29.305(a) to establish that the purchase is being made by the Government

Key terms: immune from State and local taxation · agency-designated counsel · Standard Form 1094 · U.S. Tax Exemption Form · 29.305(a)

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Generally, purchases and leases made by the Federal Government are immune from State and local taxation. Whether any specific purchase or lease is immune, however, is a legal question requiring advice and assistance of the agency-designated counsel.

(b) When it is economically feasible to do so, executive agencies shall take maximum advantage of all exemptions from State and local taxation that may be available. If appropriate, the contracting officer shall provide a Standard Form 1094, U.S. Tax Exemption Form (see part 53), or other evidence listed in 29.305(a) to establish that the purchase is being made by the Government.

Sections it refers to

  • 29.305 State and local tax exemptions.

Sections that refer to it

  • 29.204 Federal excise tax on specific foreign contract payments.
  • 53.229 Taxes (SF's 1094, 1094-A).

← 29.301 [Reserved] · 29.303 Application of State and local taxes to Government contractors and subcontractors. →

Rule changes for FAR Part 29

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 29.302 Application of State and local taxes to the Government · SpendQuery