Clauses · FAR · Payment and financing
FAR 52.229-10 State of New Mexico Gross Receipts and Compensating Tax
Does the regulation require it to flow down?
Yes
Paragraph (h): 'The Contractor agrees to insert the substance of this clause, including this paragraph (h), in each subcontract which meets the criteria in 29.401-4(b)(1) through (3) of the Federal Acquisition Regulation, 48 CFR Part 29.' The mandate is conditioned, not blanket — the SUBCONTRACT itself must independently satisfy all three tests: cost-reimbursement, title-vesting property acquisition, services in New Mexico. A prime that lists this clause in an omnibus flow-down schedule for a firm-fixed-price order is flowing something its own prescription does not reach
- Form
- substance, including paragraph (h) itself — self-perpetuating
- Reaches
- all tiers (paragraph (h) reproduces itself at every level)
Checked against acquisition.gov on 2026-08-05 · edition Apr 2003 (no alternates; page shows FAC 2026-01, effective 2026-03-13) · base v0.9.3 Read the text ↗
What it makes you produce
5 items for your checklist, slowest first.
Something somebody else has to issue you
The same day if the issuer is one of your own suppliers, months if it is an assessor or an underwriter.
Type 15 Nontaxable Transaction Certificates, applied for on Form CSR-3C and issued to you by the New Mexico Taxation and Revenue Department
FAR 52.229-10(c)
A state you have to be in, in a government system
The record has to be posted before the prime can see it, and posting is not the same day as being ready.
Registration with the State of New Mexico Taxation and Revenue Department, filed within 30 days after award
FAR 52.229-10(a)
Something you write
Days to weeks, and nobody outside your company has to agree to it.
- FAR 52.229-10(h)
The substance of this clause, including paragraph (h) itself, written into your own subcontracts
Owed only on a subcontract that independently meets all three tests at FAR 29.401-4(b)(1) through (3) — cost-reimbursement, an acquisition of property whose title vests in the United States, and services performed in New Mexico
Something you fill in and send back
Hours, once you know which one is missing.
A Type 15 certificate executed to each vendor in New Mexico selling you tangible personal property for use in performing the work
FAR 52.229-10(d)
Nothing to send now
It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.
New Mexico gross receipts tax on the fee and on the cost received for performing the services is an allowable cost on cost-reimbursement work, so a rate increase is answered by cost allowability rather than by a price adjustment
FAR 52.229-10(b)
When it is used
FAR 29.401-4(b): insert 52.229-10 only when ALL THREE conditions hold — (1) the contractor will be performing a cost-reimbursement contract; (2) the contract directs or authorizes the contractor to acquire tangible personal property as a direct cost, with title passing directly to and vesting in the United States upon delivery by the vendor; and (3) the contract will be for services to be performed in whole or in part within the State of New Mexico. 'Services' takes its meaning from New Mexico law (Sec. 7-9-3(k) NMSA 1978) and expressly reaches construction and tangible personal property that becomes an ingredient or component part of a construction project in New Mexico. FAR 29.401-4(c) lists the federal agencies, DoD among them, that have executed cooperative agreements with New Mexico to eliminate double taxation on these contracts. Every one of the three conditions is independently fatal: a firm-fixed-price subcontract fails on (1); work outside New Mexico fails on (3).
Read closely
The certificates are the mechanism that keeps a vendor from charging gross receipts tax on property the Government is really buying, and they are not a general exemption on your own purchases. Paragraph (e) is compensating use tax on property taken into non-federal use. Paragraph (i) voids paragraphs (a) through (h) if the agreement between the United States and New Mexico ends, so the tax treatment can change mid-performance.
The 3 templates that name it, with the line
Source: acquisition.gov, FAR 52.229-10 (including paragraph (h) verbatim and paragraph (i)) and FAR 29.401-4(a), (b)(1)-(3), (c) (verified 2026-08-05)
This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.