Allowable and Non-Allowable Costs Guidance

3.27. Maintenance and repair costs

Ref: 2 CFR Part 200, §200.452. 

Costs incurred for necessary maintenance, repair, or upkeep of buildings and equipment (including Federal property unless otherwise provided for) which neither add to the permanent value of the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their life shall be treated as capital expenditures. Request prior approval from your CTE Program Coordinator.