---
kind: "section"
citation: "2 C.F.R. § 1128.710"
title: "2"
number: "1128.710"
heading: "What program income includes."
url: "https://uscodex.org/cfr/2/1128.710"
---

# §1128.710. What program income includes.

- (a) **OMB guidance.** Under the definition of “program income” at [2 CFR 200.80](/cfr/2/200.80.md) and related OMB guidance at [2 CFR 200.307](/cfr/2/200.307.md), an agency's regulations or terms and conditions of grants and cooperative agreements may include as program income:
  - (1) Rebates, credits, discounts, and interest earned on any of them; and
  - (2) Taxes, special assessments, levies, fines and other similar revenue raised by a governmental recipient.
- (b) **DoD implementation.** Unless a statute or program regulation adopted in the Code of Federal Regulations after opportunity for public comment specifies otherwise, each DoD Component must exclude the types of income listed in paragraphs [(a)(1)](#a-1) and [(2)](#a-2) of this section from program income for which recipients are accountable to the Federal Government.
- (c) **Award terms and conditions—**
  - (1) **General.** Except as provided in [paragraph (c)(2)](#c-2) of this section, a DoD Component must use the wording provided in appendix G to this part as Section A of FMS Article VII in its general terms and conditions. Doing so excludes the types of income listed in paragraphs [(a)(1)](#a-1) and [(2)](#a-2) of this section from program income for which recipients are accountable to the Federal Government.
  - (2) **Exceptions.** If a DoD Component has a statutory or regulatory basis for including either or both types of income described in paragraphs [(a)(1)](#a-1) and [(2)](#a-2) of this section, it may do so by appropriately revising the wording appendix G provides for Section A of FMS Article VII. For example, to include as program income:
    - (i) Rebates, credits, discounts, and interest earned on them, a DoD Component would reserve paragraph A.3.c and insert the wording of that paragraph as a new paragraph at the end of section A.2, thereby adding them to the list of items included as program income subject to FMS Article VII.
    - (ii) Taxes, special assessments, levies, fines and other similar revenue raised by a governmental recipient, a DoD Component would reserve paragraph A.3.d and insert that wording as a new paragraph at the end of section A.2, thereby adding them to the list of items included as program income subject to FMS Article VII.

## Notes

### Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

### Source

Source: 85 FR 51171, Aug. 19, 2020, unless otherwise noted.