# COMAR Title 21 — State Procurement Regulations

## Subtitle 09 — Contract Cost Principles and Procedures

### Chapter 01 — General Regulations

#### Regulation .20 Applicable Credits.

*COMAR 21.09.01.20*

A. Definitions and Examples. Applicable credits are receipts or price reductions which offset or reduce expenditures allocable to contracts as direct or indirect costs. Examples include purchase discounts, rebates, allowances, recoveries or indemnification for losses, sale of scrap and surplus equipment and materials, adjustments for overpayments or erroneous charges, and income from employee recreational or incidental services and food sales.

B. Reducing Costs. Credits shall be applied to reduce related direct or indirect costs.

C. Refund. The State shall be entitled to a cash refund if the related expenditures have been paid to the contractor under a cost-reimbursement type contract.