What is FAR 52.229-1?

FAR 52.229-1 (State and Local Taxes.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the taxes category.

When is FAR 52.229-1 required?

FAR 52.229-1 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.

Does FAR 52.229-1 flow down to subcontractors?

Whether FAR 52.229-1 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

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52.229-1 — State and Local Taxes.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.229-1 — State and Local Taxes.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.229-1 State and Local Taxes. As prescribed in 29.401-1, insert the following clause: State and Local Taxes (APR 1984) Notwithstanding the terms of the Federal, State, and Local Taxes clause, the contract price excludes all State and local taxes levied on or measured by the contract or sales price of the services or completed supplies furnished under this contract. The Contractor shall state separately on its invoices taxes excluded from the contract price, and the Government agrees either to pay the amount of the taxes to the Contractor or provide evidence necessary to sustain an exemption. (End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 68 FR 28086, May 22, 2003]
Source: eCFR, 48 CFR 52.229-1 (https://www.ecfr.gov/current/title-48/section-52.229-1)

Compliance Checklist

The Contractor shall state separately on its invoices taxes excluded from the contract price, and the Government agrees either to pay the amount of the taxes to the Contractor or provide evidence necessary to sustain an exemption.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.