# 48 C.F.R. § 29.401-3 (2026): Federal, State, and local taxes

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_401_3

## Section

- **Citation:** 48 C.F.R. § 29.401-3 (2026)
- **Heading:** Federal, State, and local taxes
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 48 CFR: Federal Acquisition Regulations System / Chapter 1 / Part 29 / Subpart 29.4 / § 29.401-3: Federal, State, and local taxes.

## Text

(a) Except as provided in paragraph (b) of this section, insert the clause at 52.229-3, Federal, State, and Local Taxes, in solicitations and contracts if— (1) The contract is to be performed wholly or partly in the United States or its outlying areas; (2) A fixed-price contract is contemplated; and (3) The contract is expected to exceed the simplified acquisition threshold. (b) In a noncompetitive contract that meets all the conditions in paragraph (a) of this section, the contracting officer may insert the clause at 52.229-4, Federal, State, and Local Taxes (State and Local Adjustments), instead of the clause at 52.229-3, if the price would otherwise include an inappropriate contingency for potential postaward change(s) in State or local taxes. [68 FR 13205, Mar. 18, 2003, as amended at 68 FR 28083, May 22, 2003]

## Nearby sections

- [48 C.F.R. § 29.401-1 (2026) Indefinite-delivery contracts for leased equipment.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_401_1.md)
- [48 C.F.R. § 29.401-2 (2026) Construction contracts performed in North Carolina.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_401_2.md)
- [48 C.F.R. § 29.401-3 (2026) Federal, State, and local taxes.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_401_3.md)
- [48 C.F.R. § 29.401-4 (2026) New Mexico gross receipts and compensating tax.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_401_4.md)
- [48 C.F.R. § 29.402-1 (2026) Foreign fixed-price contracts.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_402_1.md)
- [48 C.F.R. § 29.402-2 (2026) Foreign cost-reimbursement contracts.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_402_2.md)
- [48 C.F.R. § 29.402-3 (2026) Tax on certain foreign procurements.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_402_3.md)
- [48 C.F.R. § 29.402-4 (2026) Taxes—Foreign Contracts in Afghanistan.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_402_4.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T48_P29_S29_401_3. Check the current official text before relying on it. Not legal advice.