Section 1220.013 - Unallowable costsThe following costs shall not be charged as direct or joint costs to NPSL operations:
(a) Bonus payments to the United States;(b) Interest (except as permitted under § 1220.011(g) );(c) Depreciation, depletion, amortization, or any other charge for capital recovery for materiel charged to the NPSL capital account under § 1220.011(c) , except as explicitly provided by the allowance for capital recovery calculated according to § 1220.020 ;(d) The cost of taking inventory;(e) Research and development costs;(f) The following legal expenses:(1) The costs of litigation against the Federal government;(2) Fines or penalties levied by any Federal agency;(3) Settlement of claims or other litigation resulting from the lessee's violation of regulatory requirements or negligence; and(4) The cost of the lessee's legal staff or expense of outside attorneys, except as explicitly allowed under § 1220.011(f) ;(g) The following employee relocation costs (whether incurred by the employee or the lessee):(1) Loss on the sale of a home;(2) Purchase price of a home in the new location;(3) Payments for employee income taxes incident to reimbursed relocation costs; and(4) Any relocation cost in connection with an employee move that is for the primary benefit of the lessee's non-NPSL operations;(h) The lessee's own cost of administering employee benefit plans;(i) The cost of acquiring or constructing shore base facilities and real property improvements that are charged to NPSL operations on a rental basis under § 1220.011(g) ;(j) Rentals on any facilities, the investment costs of which have been charged either directly or as allocable joint costs, to the NPSL capital account; and(k) Pre-NPSL expenditures.45 FR 36800, May 30, 1980, as amended at 75 FR 61087 , Oct. 4, 2010