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NIFA-19-010 2018 Farm Bill Indirect Cost Provision

Determining the Maximum Indirect Costs Allowed

Section 1462(a) and (c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (NARETPA) limits indirect costs for the overall award to 30 percent of Total Federal Funds Awarded (TFFA) under a research, education, or extension grant.

NIFA developed a Frequently Asked Questions resource which includes several budget scenarios with instructions for calculating indirect costs under each scenario.

In the event of an award, the prime awardee is responsible for ensuring the maximum indirect cost allowed for the award is not exceeded when combining indirect costs for the Federal portion (i.e., prime and subawardee(s)) and any applicable cost-sharing (see 7 CFR 3430.52(b)). Amounts exceeding the maximum allowable indirect cost is considered unallowable. See sections 408 and 410 of 2 CFR 200.

*Disclaimer: The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

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