On June 25, 2021, USAC sent a news brief to E-rate applicants reminding them to remain aware of their responsibilities regarding transfers of equipment and thereby avoid possible audit findings.
Eligible products and services purchased with E-rate program discounts cannot be sold, resold, or transferred for money or any other thing of value, with the following exceptions:
- As of January 3, 2011, applicants can dispose of, donate, or trade equipment five years after the date the equipment was installed.
- Applicants can transfer equipment to other eligible entities three years after the date the equipment was purchased.
- Applicants can transfer equipment to other eligible entities less than three years after the date the equipment was purchased if the location of the equipment is temporarily or permanently closed. Note that you may be required to report these transfers to USAC on an FCC Form 500
Starting July 1, 2021, the requirement to report transfer of equipment to USAC will change. See the chart below for more information:
USAC’s news brief can be viewed here
On July 27, 2021, USAC will conduct a webinar on equipment transfers. Register here for the event