The following costs shall not be charged as direct or joint costs to NPSL operations:
(a) Bonus payments to the United States;
(b) Interest (except as permitted under Sec. 1220.011(g));
(c) Depreciation, depletion, amortization, or any other charge for capital recovery for materiel charged to the NPSL capital account under Sec. 1220.011(c), except as explicitly provided by the allowance for capital recovery calculated according to Sec. 1220.020;
(d) The cost of taking inventory;
(e) Research and development costs;
(f) The following legal expenses:
(1) The costs of litigation against the Federal government;
(2) Fines or penalties levied by any Federal agency;
(3) Settlement of claims or other litigation resulting from the lessee's violation of regulatory requirements or negligence; and
(4) The cost of the lessee's legal staff or expense of outside attorneys, except as explicitly allowed under Sec. 1220.011(f);
(g) The following employee relocation costs (whether incurred by the employee or the lessee):
(1) Loss on the sale of a home;
(2) Purchase price of a home in the new location;
(3) Payments for employee income taxes incident to reimbursed relocation costs; and
(4) Any relocation cost in connection with an employee move that is for the primary benefit of the lessee's non-NPSL operations;
(h) The lessee's own cost of administering employee benefit plans;
(i) The cost of acquiring or constructing shore base facilities and real property improvements that are charged to NPSL operations on a rental basis under Sec. 1220.011(g);
(j) Rentals on any facilities, the investment costs of which have been charged either directly or as allocable joint costs, to the NPSL capital account; and
(k) Pre-NPSL expenditures. [45 FR 36800, May 30, 1980, as amended at 75 FR 61087, Oct. 4, 2010]