[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR226]

[Page 1035-1036]
 
                       TITLE 22--FOREIGN RELATIONS
 
            CHAPTER II--AGENCY FOR INTERNATIONAL DEVELOPMENT
 
PART 226_ADMINISTRATION OF ASSISTANCE AWARDS TO U.S. NON-GOVERNMENTAL 
 
                    Subpart C_Post-award Requirements
 
Sec.  226.24  Program income.

    (a) Recipients shall apply the standards set forth in this section 
to account for program income related to projects financed in whole or 
in part with Federal funds.
    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period shall be retained by the 
recipient and, in accordance with USAID regulations, other implementing 
guidance, or the terms and conditions of the award, shall be used in one 
or more of the following ways:
    (1) Added to funds committed by USAID and the recipient to the 
project or program, and used to further eligible project or program 
objectives.
    (2) Used to finance the non-Federal share of the project or program.
    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (c) When the agreement authorizes the disposition of program income 
as

[[Page 1036]]

described in paragraph (b)(1) or (b)(2) of this section, program income 
in excess of any limits stipulated shall be used in accordance with 
paragraph (b)(3) of this section.
    (d) If the terms and conditions of the award do not specify how 
program income is to be used, paragraph (b)(3) of this section shall 
apply automatically to all projects or programs except research. For 
awards that support research, paragraph (b)(1) of this section shall 
apply automatically unless the terms and conditions of the award provide 
another alternative, or the recipient is subject to special award 
conditions, as indicated in Sec.  226.14. Recipients which are 
commercial organizations may not apply paragraph (b)(1) of this section, 
in accordance with Sec.  226.82 of this part.
    (e) Unless the terms and conditions of the award provide otherwise, 
recipients shall have no obligation to the Federal Government regarding 
program income earned after the end of the project period.
    (f) Costs incident to the generation of program income may be 
deducted from gross income to determine program income, provided these 
costs have not been charged to the award and they comply with the cost 
principles applicable to the award funds.
    (g) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (See 
Sec. Sec.  226.30 through 226.37).
    (h) Unless the terms and condition of the award provide otherwise, 
recipients shall have no obligation to the Federal Government with 
respect to program income earned from license fees and royalties for 
copyrighted material, patents, patent applications, trademarks, and 
inventions produced under an award. However, Patent and Trademark 
Amendments (35 U.S.C. 18) apply to inventions made under an 
experimental, developmental, or research award.