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Definition
Program Income is gross income received by the grantee or subgrantee directly generated by a grant supported activity, or earned only as a result of the grant award 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.
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43 CFR 12 Administrative Requirements
12.65 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.
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(c) Cost of generating program income. If authorized by Federal regulations or the grant agreement, costs incident to the generation ofprogram of program income may be deducted from gross income to determine program income.
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(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.
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50 CFR 80 Wildlife and Sport Fish Restoration
Subpart I—Program Income
§ 80.14 Application of Wildlife and Sport Fish Restoration Program funds120 What is program income?
(a) Program income is gross income received by the grantee or subgrantee and earned only as a result of the grant during the grant period.
(b) Program income includes revenue from:
(1) Services performed under a grant;
(2) Use or rental of real or personal property acquired,
constructed, or managed with grant funds;
(3) Payments by concessioners or contractors under an arrangement with the agency or subgrantee to provide a service in support of grant objectives on real property acquired, constructed, or managed with grant funds;
(4) Sale of items produced under a grant;
(5) Royalties and license fees for copyrighted material, patents, and inventions developed as a result of a grant; or
(6) Sale of a product of mining, drilling, forestry, or agriculture during the period of a grant that supports the:
(i) Mining, drilling, forestry, or agriculture; or
(ii) Acquisition of the land on which these activities occurred.
(c) Wildlife and Sport Fish Restoration Program funds cannot be used for the purpose of producing income. However, income-producing activities incidental to accomplishment of approved purposes are allowable. Income derived from such activities must be accounted for in the project records and disposed of as directed by the DirectorProgram income does not include:
(1) Interest on grant funds, rebates, credits, discounts, or refunds;
(2) Sales receipts retained by concessioners or contractors under an arrangement with the agency to provide a service in support of grant objectives on real property acquired, constructed, or managed with grant funds;
(3) Cash received by the agency or by volunteer instructors to cover incidental costs of a class for hunter or aquatic-resource education;
(4) Cooperative farming or grazing arrangements as described at § 80.98; or
(5) Proceeds from the sale of real property.
§ 80.121 May an agency earn program income?
A State fish and wildlife agency may earn income from activities incidental to the grant purposes as long as producing income is not a primary purpose. The agency must account for income received from these activities in the project records and dispose of it according to the terms of the grant.
§ 80.122 May an agency deduct the costs of generating program income from gross income?
(a) A State fish and wildlife agency may deduct the costs of generating program income from gross income when it calculates program income as long as the agency does not:
(1) Pay these costs with:
(i) Federal or matching cash under a Federal grant, or (ii) Federal cash unrelated to a grant.
(2) Cover these costs by accepting:
(i) Matching in-kind contributions for a Federal grant, or (ii) Donations of services, personal property, or real property unrelated to a Federal grant.
(b) Examples of costs of generating program that may qualify for deduction from gross income if they are consistent with paragraph (a) of this section are:
(1) Cost of estimating the amount of commercially acceptable timber in a forest and marking it for harvest if the commercial harvest is incidental to a grant-funded habitat- management or facilities-construction project.
(2) Cost of publishing research results as a pamphlet or book for sale if the publication is incidental to a grant-funded research project.
