42 U.S.C. § 16352 — Cost sharing

(a) Applicability: Regardless of any other law, for a research, development, demonstration, or commercial-application program or activity started after August 8, 2005, the Secretary must require cost-sharing under this section. (b) Research and development (1) In general: Except as provided in paragraphs (2), (3), and (4) and subsection (f), the Secretary must require at least 20% of the cost of a research or development activity to come from a non-federal source. (2) Exclusion: Paragraph (1) does not apply to a research or development activity that is basic or fundamental in nature, as decided by the appropriate Department officer. (3) Reduction: The Secretary may reduce or eliminate the 20% requirement for an applied research and development activity if the Secretary determines that is necessary and appropriate. (4) Exemption for institutions of higher education and other nonprofit institutions: (A) Paragraph (1) does not apply to a research or development activity performed by a university or nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980). (B) This exemption applies during the 2-year period starting August 9, 2022. (c) Demonstration and commercial application (1) In general: Except as provided in paragraph (2) and subsection (f), the Secretary must require that at least 50% of the cost of a demonstration or commercial-application activity come from a non-federal source. (2) Reduction of non-Federal share: The Secretary may reduce the required 50% non-federal share if the Secretary determines that is necessary and appropriate, considering the activity's technological risk. (d) Calculation of amount: In calculating a non-federal contribution, the Secretary (1) may include allowable costs following applicable cost principles, including (A) cash, (B) personnel costs, (C) the value of a service, other resource, or third-party in-kind contribution valued under OMB rules, (D) indirect or facilities-and-administrative costs, or (E) any funds received under the Tennessee Valley Authority's power program (except funds provided through an annual appropriations act); and (2) may not include (A) revenues or royalties expected from operating the activity in the future, (B) proceeds from a future sale of an asset from the activity, or (C) other appropriated federal funds. (e) Repayment of Federal share: The Secretary cannot require repayment of the federal share of a cost-shared activity as a condition of making an award. (f) Exclusions: This section does not apply to: (1) a cooperative research and development agreement under the Stevenson-Wydler Technology Innovation Act of 1980; (2) a fee charged for using a Department facility; or (3) an award under (A) the small business innovation research program, or (B) the small business technology transfer program, both under section 638 of title 15.