Indirect-Cost Reimbursement

Published February 2000

A financing method that allows universities to be reimbursed for their expenses in building research facilities. Institutions determine the reimbursement amount by either levying a "use charge" or by depreciating the facility. Interest on debt incurred in financing a facility can also be reimbursed. It is estimated that universities recover through indirect-cost reimbursement only about 40 percent of the full value of the capital initially used to fund facilities.