---
kind: "section"
citation: "47 C.F.R. § 64.1002"
title: "47"
number: "64.1002"
heading: "Investments and expenses."
url: "https://uscodex.org/cfr/47/64.1002"
---

# §64.1002. Investments and expenses.

- (a) **Investment and expenses not used and useful in the ordinary course.** The following investments and expenses are presumed not used and useful (and thus unreasonable):
  - (1) Personal expenses, including but not limited to personal expenses for food and beverages, housing, such as rent or mortgages, vehicles for personal use, and personal travel;
  - (2) Tangible property not logically related or necessary to offering voice or broadband services;
  - (3) Political contributions;
  - (4) Membership fees and dues in social, service and recreational, or athletic clubs or organizations;
  - (5) Penalties or fines for statutory or regulatory violations; and
  - (6) **Penalties or fees for late payments on debt, loans, or other payments.**
- (b) **Non-customary investments and expenses.** Unless customary for similarly situated companies, the following investments and expenses are presumed not used and useful (and thus unreasonable):
  - (1) Personal benefits, such as gifts, housing allowances, and childcare, that are not part of taxable compensation;
  - (2) Artwork and other objects that possess aesthetic value that are displayed in the workplace;
  - (3) Aircraft, watercraft, and off-road vehicles used for work and work-related purposes;
  - (4) Cafeterias and dining facilities;
  - (5) Charitable donations;
  - (6) Entertainment;
  - (7) Food and beverage expenses for work and work-related travel;
  - (8) Membership fees and dues associated with professional organizations;
  - (9) Scholarships; and
  - (10) **Sponsorships of conferences or community events.**

## Notes

### Source

Source: 83 FR 18965, May 1, 2018, unless otherwise noted.

### Authority

Authority: 47 U.S.C. 151, 152, 154, 201, 202, 217, 218, 220, 222, 225, 226, 227, 227b, 228, 251(a), 251(e), 254(k), 255, 262, 276, 403(b)(2)(B), (c), 616, 620, 716, 1401-1473, unless otherwise noted; Pub. L. 115-141, Div. P, sec. 503, 132 Stat. 348, 1091; Pub. L. 117-338, 136 Stat. 6156.

### Source

Source: 28 FR 13239, Dec. 5, 1963, unless otherwise noted.