Grant & Contract Glossary
The gross income received by the recipient and/or sub-recipient directly generated by the supported activity, or earned as a result of the award. Program income includes (but is not limited to) income from fees for services performed, the use or rental of real or personal property acquired under the grant, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and payment of interest on loans made with grant funds. Standard Program Income Alternatives are: 1) Deduction alternative - Deducted from total allowable costs and third party in-kind contributions for the purpose of determining the net costs on which the Federal share of costs will be based. When this alternative applies, the deduction must be made from current costs unless the terms of the award authorize deferral to a later period; 2) Cost Participation or Matching Alternative - Used to satisfy all or part of a cost participation or matching requirement; 3) Additional Cost Alternative - Used for costs that are in addition to the allowable costs of the project for any purposes that further the objectives of the legislation under which the grant was made.
