Regulations

Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2010]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR143.25]

[Page 604]

TITLE 13--BUSINESS CREDIT AND ASSISTANCE

CHAPTER I--SMALL BUSINESS ADMINISTRATION

PART 143_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents

Subpart C_Post-Award Requirements

Sec. 143.25 Program income.

(a) General. Grantees are encouraged to earn income to defray

program costs. Program income includes income from fees for services

performed, from the use or rental of real or personal property acquired

with grant funds, from the sale of commodities or items fabricated under

a grant agreement, and from payments of principal and interest on loans

made with grant funds. Except as otherwise provided in regulations of

the Federal agency, program income does not include interest on grant

funds, rebates, credits, discounts, refunds, etc. and interest earned on

any of them.

(b) Definition of program income. Program income means gross income

received by the grantee or subgrantee directly generated by a grant

supported activity, or earned only as a result of the grant agreement

during the grant period. During the grant period is the time between the

effective date of the award and the ending date of the award reflected

in the final financial report.

(c) Cost of generating program income. If authorized by Federal

regulations or the grant agreement, costs incident to the generation of

program income may be deducted from gross income to determine program

income.

(d) Governmental revenues. Taxes, special assessments, levies,

fines, and other such revenues raised by a grantee or subgrantee are not

program income unless the revenues are specifically identified in the

grant agreement or Federal agency regulations as program income.

(e) Royalties. Income from royalties and license fees for

copyrighted material, patents, and inventions developed by a grantee or

subgrantee is program income only if the revenues are specifically

identified in the grant agreement or Federal agency regulations as

program income. (See Sec. 143.34.)

(f) Property. Proceeds from the sale of real property or equipment

will be handled in accordance with the requirements of Sec. Sec. 143.31

and 143.32.

(g) Use of program income. Program income shall be deducted from

outlays which may be both Federal and non-Federal as described below,

unless the Federal agency regulations or the grant agreement specify

another alternative (or a combination of the alternatives). In

specifying alternatives, the Federal agency may distinguish between

income earned by the grantee and income earned by subgrantees and

between the sources, kinds, or amounts of income. When Federal agencies

authorize the alternatives in paragraphs (g) (2) and (3) of this

section, program income in excess of any limits stipulated shall also be

deducted from outlays.

(1) Deduction. Ordinarily program income shall be deducted from

total allowable costs to determine the net allowable costs. Program

income shall be used for current costs unless the Federal agency

authorizes otherwise. Program income which the grantee did not

anticipate at the time of the award shall be used to reduce the Federal

agency and grantee contributions rather than to increase the funds

committed to the project.

(2) Addition. When authorized, program income may be added to the

funds committed to the grant agreement by the Federal agency and the

grantee. The program income shall be used for the purposes and under the

conditions of the grant agreement.

(3) Cost sharing or matching. When authorized, program income may be

used to meet the cost sharing or matching requirement of the grant

agreement. The amount of the Federal grant award remains the same.

(h) Income after the award period. There are no Federal requirements

governing the disposition of program income earned after the end of the

award period (i.e., until the ending date of the final financial report,

see paragraph (a) of this section), unless the terms of the agreement or

the Federal agency regulations provide otherwise.