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Last Updated: 7/20/2016

Federal Government, its Agencies, and Instrumentalities

The federal government, its agencies, and instrumentalities are exempt from tax. Agencies and instrumentalities are divisions of the federal government that serve a specific purpose.

Examples of federal agencies and instrumentalities include:

  • American Red Cross
  • Central Intelligence Agency
  • Federal Trade Commission
  • Social Security Administration
  • Federal credit unions
  • Federal Reserve banks

View a list of federal agencies and instrumentalities on the Federal Register website.

The following organizations do not qualify for the federal government exemption and their purchases are taxable:

  • Federally chartered banks and savings and loans
  • State chartered credit unions, banks, and savings and loans

For more information, see Revenue Notice 96-06, Exempt Entities.

 

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