Section 12-217s-6 - Direct costs(a) A direct cost is a cost that:(1) Directly supports a traffic reduction program and was incurred primarily for the purpose of encouraging or supporting the use of a trip reduction measure;(2) Can be audited using generally accepted accounting procedures; and(3) Is customary and reasonable in amount for the service or the product.(b) Direct costs include, but are not limited to:(1) On-going or occasional cash or in-kind gifts or benefits of greater than nominal financial value provided to affected employees in exchange for their utilization or consideration of trip reduction measures;(2) Capital and operating costs to provide or upgrade facilities, vehicles, vehicle services, and equipment, the primary purpose of which is to promote or support the use of trip reduction measures;(3) Salary and benefit costs for employees and any contract staff to conduct traffic reduction program activities or administer the programs, and costs for office expenses and equipment directly related to the traffic reduction programs. Annual costs for staff who work part-time shall be prorated by the annual hours the employee devotes to traffic reduction program activities relative to the total hours worked; or(4) Costs to prepare and distribute traffic reduction program information and costs to sponsor promotional activities and events.(c) The direct cost for a service provided internally by corporate staff rather than by an outside vendor shall be the lesser of:(1) The documented time and materials costs to provide the service; or(2) The reasonable cost of an equivalent service if procured from an outside vendor.(d) Costs excluded from direct costs include but are not limited to:(1) Benefits provided to employees not defined as participating employees;(2) Capital costs in excess of tax depreciation schedules; or (3) Salary costs and benefit costs such as overhead and indirect costs not directly attributable to the traffic reduction program, and costs related to the preparation and submission of plans.(e) The total direct costs claimed by a corporation for purposes of the tax credit shall be the sum of direct costs less any revenue or reimbursement received by the corporation as a direct result of the voluntary traffic reduction program, including any gain from the sale of any capital equipment for which a credit was previously claimed.Conn. Agencies Regs. § 12-217s-6
Adopted effective April 1, 1999