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:
- 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.
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.