The Louisiana Association of General Contractors (AGC) recently shared a major legislative win for the construction industry. Thanks to persistent advocacy and collaboration with state leaders, Act 384 took effect on July 1, 2025, providing a sales tax exemption for contractors and subcontractors working on public construction projects.
This long-awaited change will help reduce costs and administrative burden for companies engaged in state and local public works, ultimately benefiting both contractors and taxpayers.
What You Need to Know
To take advantage of the exemption, contractors must complete LDR Form R-85012-T. This form gathers information about the contractor, the public entity, and contract details. Importantly, a copy of the executed contract must be included with the submission to avoid processing delays.
Only the general contractor needs to submit the application—once approved, the exemption certificate can be shared with all subcontractors on the project.
Key Application Steps:
- Complete Form R-85012-T
- Attach the fully executed public works contract
- Email the form and documents to [email protected]
- Use Form R-1056 in the interim while your application is processed (no approval required for interim form)
The approved exemption certificate must be presented to vendors at the time of purchase to qualify for the exemption.
AGC: Advocating for the Construction Industry
This exemption is the result of strong advocacy from AGC on behalf of Louisiana contractors, who have long called for relief from sales tax burdens on materials for public projects.
For questions about the application process, contact the Taxpayer Compliance Division at [email protected].