Section 76.560 - General indirect cost rates; exceptions(a) The differences between direct and indirect costs and the principles for determining the general indirect cost rate that a grantee may use for grants under most programs are specified in the cost principles for- (1) All grantees, other than hospitals and commercial (for-profit) organizations, at 2 CFR part 200 , subpart E-Cost Principles;(2) Hospitals, at 45 CFR part 75 , Appendix XI, Principles for Determining Costs Applicable to Research and Development Under Awards and Contracts With Hospitals; and(3) Commercial (for-profit) organizations, at 48 CFR part 31 , Contract Cost Principles and Procedures.(b) A grantee must have a current indirect cost rate agreement to charge indirect costs to a grant. To obtain an indirect cost rate, a grantee must submit an indirect cost proposal to its cognizant agency and negotiate an indirect cost rate agreement.(c) The Secretary may establish a temporary indirect cost rate for a grantee that does not have an indirect cost rate agreement with its cognizant agency.(d) The Secretary accepts an indirect cost rate negotiated by a grantee's cognizant agency, but may establish a restricted indirect cost rate for a grantee to satisfy the statutory requirements of certain programs administered by the Department.57 FR 30341, July 8, 1992, as amended at 59 FR 59582, Nov. 17, 1994; 79 FR 76094, Dec. 19, 2014 Authority: 20 U.S.C. 1221e-3 , 3474 , and 6511(a)