---
kind: "section"
citation: "7 C.F.R. § 1486.404"
title: "7"
number: "1486.404"
heading: "Ineligible expenditures."
url: "https://uscodex.org/cfr/7/1486.404"
---

# §1486.404. Ineligible expenditures.

- (a) CCC will not reimburse expenditures made prior to approval of a Recipient's proposal, unreasonable expenditures, or any cost of:
  - (1) Branded product promotions, e.g., in-store promotions, restaurant advertising, labeling, etc.;
  - (2) Administrative and operational expenses for trade shows;
  - (3) Advertising;
  - (4) Preparation and printing of magazines, brochures, flyers, posters, etc., except in connection with specific approved activities such as training;
  - (5) Design, development, and maintenance of information technology projects;
  - (6) Purchase of equipment, e.g., office equipment or other fixed assets;
  - (7) Subsidizing or otherwise providing funds for graduate programs at colleges and/or universities (salaries or fees for individual students who are directly assigned to specific project activities appropriate to their backgrounds may be covered on a pro-rated basis);
  - (8) Subsidizing normal, day-to-day operating costs of an entity, except as allowed under [§ 1486.403(b)(6)](/cfr/7/1486.403.md?p=b-6);
  - (9) Honoraria for speakers;
  - (10) Costs of product research or new product development;
  - (11) Costs of developing technical assistance proposals submitted to the program;
  - (12) Refundable deposits or advances;
  - (13) STRE expenses within the United States;
  - (14) All costs related to the shipping, over land and sea, of commodity samples;
  - (15) Expenses, fines, settlements, judgments, or payments relating to legal suits, challenges, or disputes, including legal fees and costs associated with trade disputes, except as otherwise allowed in [2 CFR part 200](/cfr/2/part200.md);
  - (16) Real estate costs other than allowable rental costs for office space whose use is assigned specifically to a project funded by the EMP; and
  - (17) Any expenditure that has been or will be reimbursed by any other source.
- (b) CCC may determine, at CCC's discretion, whether any cost not expressly listed in this section will be reimbursed.

## Notes

### Authority

Authority: 7 U.S.C. 5623, 5662-5663.

### Source

Source: 84 FR 69986, Dec. 20, 2019, unless otherwise noted.