# 48 CFR § 29.305: 29.305 State and local tax exemptions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-48-29.305

## Section

- **Citation:** 48 CFR § 29.305
- **Heading:** 29.305 State and local tax exemptions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 48—Federal Acquisition Regulations System > CHAPTER 1—FEDERAL ACQUISITION REGULATION > SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS > PART 29—TAXES > Subpart 29.3—State and Local Taxes

## Text

(a) Evidence of exemption. Evidence needed to establish exemption from State or local taxes depends on the grounds for the exemption claimed, the parties to the transaction, and the requirements of the taxing jurisdiction. Such evidence may include the following:
(1) A copy of the contract or relevant portion.
(2) Copies of purchase orders, shipping documents, credit-card-imprinted sales slips, paid or acknowledged invoices, or similar documents that identify an agency or instrumentality of the United States as the buyer.
(3) A U.S. Tax Exemption Form (SF 1094).
(4) A State or local form indicating that the supplies or services are for the exclusive use of the United States.
(5) Any other State or locally required document for establishing general or specific exemption.
(6) Shipping documents indicating that shipments are in interstate or foreign commerce.
(b) Furnishing proof of exemption. If a reasonable basis to sustain a claimed exemption exists, the seller will be furnished evidence of exemption, as follows:
(1) Under a contract containing the clause at 52.229-3, Federal, State, and Local Taxes, or at 52.229-4, Federal, State, and Local Taxes (State and Local Adjustments), in accordance with the terms of those clauses.
(2) Under a cost-reimbursement contract, if requested by the contractor and approved by the contracting officer or at the discretion of the contracting officer.
(3) Under a contract or purchase order that contains no tax provision, if—
(i) Requested by the contractor and approved by the contracting officer or at the discretion of the contracting officer; and
(ii) Either the contract price does not include the tax or, if the transaction or property is tax exempt, the contractor consents to a reduction in the contract price.
[48 FR 42293, Sept. 19, 1983, as amended at 62 FR 237, Jan. 2, 1997; 68 FR 13205, Mar. 18, 2003]

## Nearby sections

- [48 CFR § 29.101 29.101 Resolving tax problems.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.101.md)
- [48 CFR § 29.201 29.201 General.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.201.md)
- [48 CFR § 29.202 29.202 General exemptions.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.202.md)
- [48 CFR § 29.203 29.203 Other Federal tax exemptions.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.203.md)
- [48 CFR § 29.204 29.204 Federal excise tax on specific foreign contract payments.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.204.md)
- [48 CFR § 29.300 29.300 Scope of subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.300.md)
- [48 CFR § 29.302 29.302 Application of State and local taxes to the Government.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.302.md)
- [48 CFR § 29.303 29.303 Application of State and local taxes to Government contractors and subcontractors.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.303.md)
- [48 CFR § 29.304 29.304 Matters requiring special consideration.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.304.md)
- [48 CFR § 29.305 29.305 State and local tax exemptions.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.305.md)
- [48 CFR § 29.401-1 29.401-1 Indefinite-delivery contracts for leased equipment.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.401-1.md)
- [48 CFR § 29.401-2 29.401-2 Construction contracts performed in North Carolina.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.401-2.md)
- [48 CFR § 29.401-3 29.401-3 Federal, State, and local taxes.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.401-3.md)
- [48 CFR § 29.401-4 29.401-4 New Mexico gross receipts and compensating tax.](https://www.frixlaw.com/law-library/statutes/ecfr-48-29.401-4.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-48-29.305. Check the current official text before relying on it. Not legal advice.