May an agency deduct the costs of generating program income from gross income?

§ 80.122 May an agency deduct the costs of generating program income from gross income? (a) A State fish and wildlife agency may deduct the costs of generating program income from gross income when it calculates program income as long as the agency does not: (1) Pay these costs with: (i) Federal or matching cash under a Federal grant; or (ii) Federal cash unrelated to a grant. (2) Cover these costs by accepting: (i) Matching in-kind contributions for a Federal grant; or (ii) Donations of services, personal property, or real property unrelated to a Federal grant. (b) Examples of costs of generating program income that may qualify for deduction from gross income if they are consistent with paragraph (a) of this section are: (1) Cost of estimating the amount of commercially acceptable timber in a forest and marking it for harvest if the commercial harvest is incidental to a grant-funded habitat-management or facilities-construction project. (2) Cost of publishing research results as a pamphlet or book for sale if the publication is incidental to a grant-funded research project.