What Is the Exemption?
A state and local sales/use tax exemption for general contractors and subcontractors purchasing materials and taxable services for construction projects funded by state or local government.
Who Qualifies?
General Contractors and Subcontractors with a valid contract for a public project, where:
The owner is a state agency, parish, municipality, or other political subdivision.
The project is funded with public appropriated funds.
Examples Include:
State office buildings
Local schools
Public roads or bridges
Water treatment facilities built for a city
What’s Not Eligible?
Payment-In-Lieu-of-Taxes (PILOT) financed or similar projects unless explicitly approved in writing by both:
- Louisiana Dept. of Revenue (LDR), and Louisiana Dept. of Economic Development (LED).
Private or mixed-use developments, even with public benefit, do not qualify.
Application Requirements
Every contractor and subcontractor must apply separately.
You cannot rely on the general contractor’s certificate to exempt your purchases.
Steps to Apply:
Download Form R-1057 – Application for Certificate of Sales/Use Tax Exemption for Public Projects.
Complete the Form, including:
- Contractor or subcontractor information
- Project description
- Contract number
- Contract dates
- Government entity details
- A copy of the fully executed construction contract
Submit to the Louisiana Department of Revenue by mail, fax, or email (as instructed on the form).
Wait for Approval – you’ll receive a certificate confirming your exemption eligibility.
Using the Exemption
Present the certificate to your suppliers before purchasing materials or taxable services.
Retain the certificate and all project-related documentation.
Use the exemption only for materials/services directly tied to the qualifying public project.
Important Reminders
- Do not make exempt purchases without an approved certificate.
- Subcontractors must apply separately.
- Exemptions do not apply automatically.
- Maintain complete records – these exemptions are subject to audit.
Effective July 1, 2025
Reference: RS 47:305.7(A)(1)(b), amended by Act 384
