---
kind: "section"
citation: "30 C.F.R. § 1220.013"
title: "30"
number: "1220.013"
heading: "Unallowable costs."
url: "https://uscodex.org/cfr/30/1220.013"
---

# §1220.013. Unallowable costs.


The following costs shall not be charged as direct or joint costs to NPSL operations:

- (a) Bonus payments to the United States;
- (b) Interest (except as permitted under [§ 1220.011(g)](/cfr/30/1220.011.md?p=g));
- (c) Depreciation, depletion, amortization, or any other charge for capital recovery for materiel charged to the NPSL capital account under [§ 1220.011(c)](/cfr/30/1220.011.md?p=c), except as explicitly provided by the allowance for capital recovery calculated according to [§ 1220.020](/cfr/30/1220.020.md);
- (d) The cost of taking inventory;
- (e) Research and development costs;
- (f) **The following legal expenses—**
  - (1) The costs of litigation against the Federal government;
  - (2) Fines or penalties levied by any Federal agency;
  - (3) Settlement of claims or other litigation resulting from the lessee's violation of regulatory requirements or negligence; and
  - (4) The cost of the lessee's legal staff or expense of outside attorneys, except as explicitly allowed under [§ 1220.011(f)](/cfr/30/1220.011.md?p=f);
- (g) **The following employee relocation costs (whether incurred by the employee or the lessee)—**
  - (1) Loss on the sale of a home;
  - (2) Purchase price of a home in the new location;
  - (3) Payments for employee income taxes incident to reimbursed relocation costs; and
  - (4) Any relocation cost in connection with an employee move that is for the primary benefit of the lessee's non-NPSL operations;
- (h) The lessee's own cost of administering employee benefit plans;
- (i) The cost of acquiring or constructing shore base facilities and real property improvements that are charged to NPSL operations on a rental basis under [§ 1220.011(g)](/cfr/30/1220.011.md?p=g);
- (j) Rentals on any facilities, the investment costs of which have been charged either directly or as allocable joint costs, to the NPSL capital account; and
- (k) **Pre-NPSL expenditures.**

## Notes

### Amendments

[45 FR 36800, May 30, 1980, as amended at 75 FR 61087, Oct. 4, 2010]

### Authority

Authority: Sec. 205, Pub. L. 95-372, 92 Stat. 643 (43 U.S.C. 1337).

### Source

Source: 45 FR 36800, May 30, 1980, unless otherwise noted. Redesignated at 48 FR 1182, Jan. 11, 1983, and further redesignated at 48 FR 35642, Aug. 5, 1983, 75 FR 61087, Oct. 4, 2010.

### Amendments

[45 FR 36800, May 30, 1980, as amended at 75 FR 61087, Oct. 4, 2010]