42 U.S.C. § 16352 — Cost sharing

(a) Regardless of 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) Except for paragraphs (2)–(4) and subsection (f), at least 20% of a research or development activity’s cost must come from a non-Federal source. This does not apply to basic or fundamental work as the Department’s proper officer determines. The Secretary may reduce or remove the share for applied work if necessary and appropriate. It also does not apply to work performed by a higher-education institution or nonprofit institution under 15 U.S.C. § 3703; that exemption applies for the 2 years beginning August 9, 2022. (c) Except for paragraph (2) and subsection (f), at least 50% of a demonstration or commercial-application activity’s cost must come from a non-Federal source. The Secretary may reduce that share if necessary and appropriate, considering technological risk. (d) In calculating a non-Federal contribution, the Secretary may count allowable costs under applicable cost principles: cash; personnel costs; the value of services, resources, or third-party in-kind contributions under the applicable OMB circular; indirect or facilities and administrative costs; and Tennessee Valley Authority power-program funds unless supplied under an annual appropriation. The Secretary may not count expected revenue or royalties after the award period, expected proceeds from selling an activity asset, or other appropriated Federal funds. (e) The Secretary may not require repayment of the Federal share as a condition of an award. (f) This section does not apply to a cooperative research and development agreement under the Stevenson-Wydler Act; a fee for use of a Department facility; or an award under the small business innovation research or small business technology transfer programs under 15 U.S.C. § 638.