[Federal Register Volume 66, Number 224 (Tuesday, November 20, 2001)]
[Rules and Regulations]
[Pages 58194-58255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27764]



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Part II





General Services Administration





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41 CFR Part 300-2, et al.



Federal Travel Regulation; Relocation Allowances; Final Rule

Federal Register / Vol. 66 , No. 224 / Tuesday, November 20, 2001 / 
Rules and Regulations

[[Page 58194]]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 300-2, 300-3, 300-70 and Ch. 302

[FTR Amendment 98]
RIN 3090-AG93


Federal Travel Regulation; Relocation Allowances

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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SUMMARY: This final rule amends the Federal Travel Regulation (FTR) for 
relocation allowances. This amendment is written in plain language 
using a question and answer format in continuation of the General 
Services Administration's (GSA's) effort to make the FTR easier to 
understand and to use. These changes provide greater flexibility for 
agencies to authorize and approve relocation expenses.

EFFECTIVE DATE: This final rule is effective February 19, 2002.

FOR FURTHER INFORMATON CONTACT: Jim Harte, Travel Management Policy, 
telephone (202) 501-1538.

SUPPLEMENTARY INFORMATION:

A. Background

    This amendment is written in ``plain language'' as a continuation 
of the General Services Administration's (GSA) effort to make the FTR 
easier to understand and use.

What Is the ``Plain Language'' Style of Regulation Writing?

    The ``plain language'' style of regulation writing is a new, 
simpler to read and understand, question and answer regulatory format. 
Questions are in the first person, and answers are in the second 
person. GSA uses a ``we'' question when referring to an agency, and an 
``I'' question when referring to the employee. However, the rules 
stated in either instance apply to both the agency and the employee.

What Are the Significant Changes?

    1. Part 300-3, Glossary of Terms, is amended by adding new terms 
and revises the definition of household goods (HHG) by removing the 
exclusion of small boats and adding ultra light vehicles.
    2. Section 300-70.2 is amended to require agencies to report the 
administrative cost associated with their processing of travel 
authorizations and travel vouchers. This requirement is necessary to 
substantiate administrative cost savings associated with the JFMIP 
recommendations to simplify and streamline the entire travel process 
from start to finish.
    3. Part 302-1, Applicability, General Rules and Eligibility 
Conditions, is designated and renumbered Part 302-1, General Rules.
    4. Part 302-2, Allowances for Subsistence and Transportation, is 
designated Part 302-2, Employee Eligibility Requirements.
    5. Section 302-2.6 increases the mileage distance for a short-
distance relocation requirement from 10 miles to 50 miles.
    6. Section 302-2.11 increases the maximum length of time for which 
agencies are authorized to extend the eligibility period for employees 
to incur reimbursable relocation expenses from one year to two years.
    7. Part 302-3, Allowances for Miscellaneous Expenses, becomes part 
302-16.
    8. Section 302-4.201 revises the computation of en route per diem 
for relocation travel by eliminating the one-fourth of the prescribed 
per diem rate for each one-fourth of the prescribed minimum driving 
distance and replacing it with the same per diem rate prescribed for 
temporary duty travel-75% of the applicable M&IE allowance for the 
first day of travel and last day of travel.
    9. Sections 302-16.12(a) and (b) are revised to increase the 
miscellaneous expense flat rate allowances from $350 to $500 for an 
employee without immediate family and from $700 to $1000 for an 
employee with immediate family.
    10. Part 302-4, Allowance for Househunting Trip Expenses, is 
redesignated as part 302-5 and remains unchanged except for references 
and by adding a new question 302-5.18 which clarifies that any balance, 
after expenses incurred, under fixed amount reimbursement belongs to 
the employee.
    11. Part 302-5, Allowances for Temporary Quarters Subsistence 
Expenses, is redesignated as part 302-6 and remains unchanged except 
for references and by adding a new question 302-6.203 which clarifies 
that any balance, after expenses incurred under fixed amount 
reimbursement belongs to the employee.
    12. Section 302-6.12 corrects cross references.
    13. Section 302-6.4(b) increases the mileage distance from 40 to 50 
miles, via a usually traveled surface route, for the authorization of 
temporary quarters subsistence expense allowance.
    14. Section 302-6.104 is revised to allows agency flexibility to 
authorize TQSE in less than 30-day increments.
    15. Part 302-6, Allowances for Expenses Incurred in Connection with 
Residence Transaction, is redesignated as part 302-11.
    16. Part 302-7, Transportation of Mobile Home, is redesignated as 
part 302-10.
    17. Part 302-8, Transportation and Temporary Storage of Household 
Goods and Professional Books, Papers and Equipment, is redesignated as 
part 302-7.
    18. New Sec. 302-7.303 is added to authorize the shipment of 
professional books, papers and equipment (PBP&E) from an OCONUS 
location upon returning to CONUS for separation from the OCONUS 
assignment, provided that the PBP&E was transported to the OCONUS 
location at the expense of the Government.
    19. Part 302-9, Allowances for Nontemporary Storage of Household 
Goods, is redesignated as part 302-8 and the term ``Nontemporary 
Storage'' is revised to read ``Extended Storage''.
    20. Part 302-10, Allowances for Transportation and Emergency 
Storage of a Privately Owned Vehicle, is redesignated as part 302-9 and 
remains unchanged except for references.
    21. Part 302-11, Relocation Income Tax (RIT) Allowance, is 
redesignated as part 302-17 and remains as it currently appears in the 
CFR, except that only the latest published RIT allowance tables appear 
in Appendices A, B, C, and D.
    22. Subparts A and B of part 302-12 are reversed and renumbered 
accordingly. The part designation and text remain the same.
    23. Part 302-13 is reserved.
    24. Part 302-14, Home Marketing Incentive Payments, remains as it 
currently appears in the CFR.
    25. Part 302-15, Allowances for Property Management Services, 
remains as it currently appears in the CFR.
    26. The term ``nontemporary storage'' in sections 302-17.3(c): 302-
17.4(c); and 302-17.7(b) is revised to read ``extended storage''.
    27. Part 302-11 (redesignated as part 302-17, Relocation Income Tax 
(RIT) Allowance) has not been rewritten and remains as it currently 
appears in the CFR. The part is currently under review by the Internal 
Revenue Service.
    The following redesignation table is provided for the convenience 
of the reader:

------------------------------------------------------------------------
                           Old part                             New part
------------------------------------------------------------------------
302-1.........................................................  302-1 &
                                                                302-2
302-1, Subparts A, B & C......................................  302-3
302-2.........................................................  302-4
302-3.........................................................  302-16

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302-4.........................................................  302-5
302-5.........................................................  302-6
302-6.........................................................  302-11
302-7.........................................................  302-10
302-8.........................................................  302-7
302-9.........................................................  302-8
302-10........................................................  302-9
302-11........................................................  302-17
302-12........................................................  302-12
302-14........................................................  302-14
302-15........................................................  302-15
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B. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment. Therefore, the Regulatory Flexibility 
Act does not apply.

C. Executive Order 12866

    GSA has determined that this rule is not a significant regulatory 
action for the purposes of Executive Order 12866 of September 30, 1993.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public which require the approval of the Office of Management 
and Budget under 44 U.S.C. 501 et seq.

E. Small Business Regulatory Enforcement Fairness Act

    This rule also is exempt from Congressional review prescribed under 
5 U.S.C. 801 since it relates solely to agency management and 
personnel.

List of Subjects in 41 CFR Chapters 300 and 302

    Government employees, Entitlements and transfers, Relocation 
allowances, Travel and transportation expenses.


    For the reasons set forth in the preamble, 41 CFR Ch. 300 is 
amended and Ch. 302 is revised as follows:

CHAPTER 300--[AMENDED]

PART 300-2--HOW TO USE THE FTR

    1. The authority citation for 41 CFR part 300-2 continues to read 
as follows:

    Authority: 5 U.S.C. 5707; 5 U.S.C. 5738; 5 U.S.C. 5741-5742; 20 
U.S.C. 905(a); 31 U.S.C. 1353; 40 U.S.C. 486(c); 49 U.S.C. 40118; 
E.O. 11609, 3 CFR, 1971-1975 Comp., p. 586.


    2. Section 300-2.22 is amended by revising the table to read as 
follows:


Sec. 300-2.22  Who is subject to the FTR?

* * * * *

------------------------------------------------------------------------
                                     The employee       And the agency
               For                  provisions are      provisions are
                                     contained in        contained in
------------------------------------------------------------------------
Chapter 301.....................  Subchapters A, B,   Subchapter D.
                                   and C.
Chapter 302.....................  Subparts A, B, C,   Subparts A, B, C,
                                   D, E, F, and G.     D, E, F and G.
Chapter 303.....................  N/A...............  Subparts A, B, C,
                                                       D, E and F.
------------------------------------------------------------------------

Part 300-3--GLOSSARY OF TERMS

    3. The authority citation for 41 CFR part 300-3 continues to read 
as follows:

    Authority: 5 U.S.C. 5707; 5 U.S.C. 5738, 5 U.S.C. 5741-5742; 20 
U.S.C. 905(a); 31 U.S.C. 1353; 40 U.S.C. 486(c); 49 U.S.C. 40118; 
E.O. 11609, 3 CFR, 1971-1975 Comp., p. 586.

    4. Section 300-3.1 is amended by adding in alphabetical order the 
following definitions:


Sec. 300-3.1  What do the following terms mean?

* * * * *
    Agency--For purposes of chapter 302 agency means:
    (1) An executive agency as defined in Title 5 U.S.C. 105 (an 
executive department an independent, establishment, the General 
Accounting Office, or a wholly owned Government corporation as defined 
in section 101 of the Government Corporation Control Act, as amended 
(31 U.S.C. 9101), but excluding a Government controlled corporation);
    (2) A military department;
    (3) A court of the United States;
    (4) The Administrative Office of the United States Courts;
    (5) The Federal Judicial Center;
    (6) The Library of Congress;
    (7) The United States Botanic Garden;
    (8) The Government Printing Office; and
    (9) The District of Columbia.
* * * * *
    Commuted Rate--A price rate used to calculate a set amount to be 
paid to an employee for the transportation and temporary storage of 
his/her household goods. It includes cost of line-haul transportation, 
packing/unpacking, crating/uncrating, drayage incident to 
transportation and other accessorial charges and costs of temporary 
storage within applicable weight limit for storage including handling 
in/out charges and necessary drayage.
* * * * *
    Extended Storage--Storage of household goods while an employee is 
assigned to an official station or post of duty to which he/she is not 
authorized to take or unable to use the household goods or is 
authorized in the public interest. Also referred to as nontemporary 
storage.
* * * * *
    Household Goods (HHG)--Property, unless specifically excluded, 
associated with the home and all personal effects belonging to an 
employee and immediate family members on the effective date of the 
employee's change of official station orders (the day the employee 
reports for duty at the new official station) that legally may be 
accepted and transported by a commercial HHG carrier.
    (1) HHG also includes:
    (i) Professional Books, papers and equipment (PBP&E);
    (ii) Spare parts of a POV (see definition of POV) and a pickup 
truck tailgate when removed);
    (iii) Integral or attached vehicle parts that must be removed due 
to high vulnerability to pilferage or damage, (e.g., seats, tops, 
wench, spare tire, portable auxiliary gasoline can(s) and miscellaneous 
associated hardware);
    (iv) Consumable goods for employees assigned to locations where the 
Department of State has determined that such goods are necessary;
    (v) Vehicles other than POVs (such as motorcycles, mopeds, jet 
skies, snowmobiles, golf carts, boats that can be transported in the 
moving van (e.g., canoe, kayak, rowboat, O/I motorboat (14 ft or 
less)).
    (vi) Ultralight Vehicles (defined in 14 CFR part 103 as being 
single occupant, for recreation or sport purposes, weighing less than 
155 pounds if unpowered or less than 254 pounds if powered, having a 
fuel capacity NTE 5 gallons, airspeed NTE 55 knots, and power-off stall 
speed NTE 24 knots.
    (2) HHG does not include:
    (i) Personal baggage when carried free on tickets;
    (ii) Automobiles, trucks, vans and similar motor vehicles, mobile 
homes, camper trailers, and farming vehicles;
    (iii) Live animals including birds, fish, reptiles;

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    (iv) Cordwood and building materials;
    (v) HHG for resale, disposal or commercial use rather than for use 
by employee and immediate family members;
    (vi) Privately owned live ammunition; and
    (vii) Propane gas tanks.
    (3) Federal, State and local laws or carrier regulations may 
prohibit commercial shipment of certain articles not included in 
paragraph (2) of this definition. These articles frequently include:
    (i) Property liable to impregnate or otherwise damage equipment or 
other property (e.g., hazardous articles including explosives, 
flammable and corrosive material, poisons);
    (ii) Articles that cannot be taken from the premises without damage 
to the article or premises;
    (iii) Perishable articles (including frozen foods) articles 
requiring refrigeration, or perishable plants unless;
    (a) Shipment is to be transported not more than 150 miles and/or 
delivery accomplished within 24 hours from the time of loading,
    (b) No storage is required, and
    (c) No preliminary or en route services (e.g., watering or other 
preservative method) is required of the carrier.
* * * * *
    Mobile Home--Any type of house trailer or mobile dwelling 
constructed for use as a residence and designed to be moved overland, 
either by self-propulsion or towing. Also, a boat (houseboat, yacht, 
sailboat, etc.) when used as the employee's primary residence.
* * * * *
    Professional Books, Papers and Equipment (PBP&E)--Includes, but is 
not limited to, the following items in the employee's possession when 
needed by the employee in the performance of his/her official duties:
    (1) Reference material;
    (2) Instruments, tools, and equipment peculiar to technicians, 
mechanics and members of the professions;
    (3) Specialized clothing (e.g., diving suits, flying suits, 
helmets, band uniforms, religious vestments and other special apparel); 
and
    (4) Communications equipment used by the employee in association 
with the MARS (see DoD 4650.2, Military Affiliate Radio System (MARS) 
which is available electronically from the world wide web at http://web7.whs.osd.mil).
* * * * *
    Temporary Storage--Storage of HHG for a limited period of time at 
origin, destination or en route in connection with transportation to, 
from, or between official station or post of duty or authorized 
alternate points. Also referred to as storage in transit (SIT).

PART 300-70--AGENCY REPORTING REQUIREMENTS

    5. The authority citation for 41 CFR part 300-70 continues to read 
as follows:

    Authority: 5 U.S.C. 5707; 5 U.S.C. 5738, 5 U.S.C. 5741-5742; 20 
U.S.C. 905(a); 31 U.S.C. 1353; 40 U.S.C. 486(c); 49 U.S.C. 40118; 
E.O. 11609, 3 CFR, 1971-1975 Comp., p. 586.


    5A. Section 300-70.2 is amended by removing the word ``and'' after 
paragraph (d), redesignating paragraph (e) as (f) and adding a new 
paragraph (e) to read as follows:


Sec. 300-70.2  What information must we report?

* * * * *
    (e) The estimated cost of administrating your agency's processing 
of travel authorizations and travel vouchers; and
* * * * *

    6. Chapter 302 is revised as follows:

CHAPTER 302--RELOCATION ALLOWANCES

Subchapter A--Introduction

Part
302-1  General rules
302-2  Employee eligibility requirements

Subchapter B--Relocation Allowances

302-3  Relocation allowance by specific type

Subchapter C--Permanent Change of Station (PCS) Allowances for 
Subsistence and Transportation Expenses

302-4  Allowances for subsistence and transportation
302-5  Allowance for househunting trip expenses
302-6  Allowance for temporary quarters subsistence expenses

Subchapter D--Transportation and Storage of Property

302-7  Transportation and temporary storage of household goods and 
professional books, papers, and equipment
302-8  Allowances for extended storage of household goods (HHG)
302-9  Allowances for transportation and emergency storage of a 
privately owned vehicle
302-10  Allowances for transportation of mobile homes and boats used 
as a primary residence

Subchapter E--Residence Transaction Allowances

302-11  Allowances for expenses incurred in connection with 
residence transactions
302-12  Use of a relocation services company
302-14  Home marketing incentive payments
302-15  Allowance for property management services

Subchapter F--Miscellaneous Allowances

302-16  Allowance for miscellaneous expenses
302-17  Relocation income taxation

Subchapter A--Introduction

PART 302-1--GENERAL RULES

Subpart A--Applicability

Sec.
302-1.1  Who is eligible for relocation expense allowances under 
this chapter?
302-1.2  Who is not eligible for relocation expense allowances under 
this chapter?

Subpart B--[Reserved]

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).

Subpart A--Applicability

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 302-1.1  Who is eligible for relocation expense allowances under 
this chapter?

    You are generally eligible for relocation expense allowances under 
this chapter if you are:
    (a) A new appointee appointed to your first official duty station 
(as discussed in this chapter);
    (b) An employee transferring in the interest of the Government from 
one agency or duty station to another for permanent duty, and your new 
duty station is at least 50 miles distant from your old duty station 
(see Sec. 302-2.6 of this chapter);
    (c) An employee of the United States Postal Service transferred for 
permanent duty, under 39 U.S.C. 1006, from the Postal Service to an 
agency as defined in 5 U.S.C. 5721;
    (d) An employee performing travel in accordance with your overseas 
tour renewal agreement (see Secs. 302-3.209 through 302-3.224 of this 
Chapter);
    (e) An employee returning from an overseas assignment for 
separation from the Government;
    (f) A student trainee assigned to any position upon completion of 
college work;
    (g) An employee eligible for a ``last move home'' benefit upon 
separation from the Government (and your immediate family in the event 
of your death prior to separation or after separation but prior to 
relocating);
    (h) A Department of Defense overseas dependents school system 
teacher;

[[Page 58197]]

    (i) A career appointee to the Senior Executive Service (SES) as 
defined in 5 U.S.C. 3132(a)(4), and a prior SES appointee who is 
returning to your official residence for separation and who will be 
retaining SES retirement benefits; or
    (j) An employee that is being assigned to a temporary duty station 
in connection with long-term assignment.


Sec. 302-1.2  Who is not eligible for relocation expense allowances 
under this chapter?

    You are not eligible to receive relocation expense allowances under 
this chapter if you are:
    (a) A Foreign Service Officer or a Federal employee transferred 
under the rules of the Foreign Service Act of 1980, as amended;
    (b) An officer or an employee transferred under the Central 
Intelligence Act of 1949, as amended;
    (c) A person whose pay and allowances are prescribed under title 37 
U.S.C., ``Pay and Allowances of the Uniformed Services''
    (d) An employee of the Veterans' Administration to whom 38 U.S.C. 
235 applies; or
    (e) A person not covered in Sec. 302-1.1.

Subpart B--[Reserved]

PART 302-2--EMPLOYEES ELIGIBILITY REQUIREMENTS

Subpart A--General Rules
Sec.
302-2.1  When may I begin my transfer or reassignment?
302-2.2  May I relocate to my new official duty station before I 
receive a written travel authorization (TA)?
302-2.3  What determines my entitlements and allowances for 
relocation?
301-2.4  What is my effective transfer or appointment date?
302-2.5   May I relocate from a location other than the location 
specified in my relocation travel authorization?
302-2.6   May I be reimbursed for relocation expenses if I relocate 
to a new official station that is less than 50 miles from my old 
official duty station?

Time Limits

302-2.7   When may I begin my travel and transportation after 
receiving authorization to do so?
302.2.8   When must I complete all aspects of my relocation?
302.2.9   If I am furloughed to perform active military duty, will I 
have to complete all aspects of the relocation within the time 
limitation?
302-2.10   Does the 2-year time period in Sec. 302-2.8 include time 
that I cannot travel and/or transport my household effects due to 
shipping restrictions to or from my post of duty OCONUS?
302-2.11   May the 2-year time limitation for completing all aspects 
of a relocation be extended?

Service Agreements

302-2.12   What is a service agreement?
302-2.13   Am I required to sign a service agreement when 
transferring within or outside the continental United States or 
performing renewal agreement travel and what is the minimum period 
of service?
302-2.14   Will I be penalized for violation of my service 
agreement?
302-2.15   Must I provide my agency with my actual place of 
residence as soon as I accept a transfer/appointment OCONUS?
302-2.16  Must I sign a service agreement for a ``last move home'' 
relocation?
302-2.17   What happens if I fail to sign a service agreement?
302-2.18   Can my service agreement be voided by a subsequent 
service agreement?
302-2.19   If I have more than one service agreement, must I adhere 
to each agreement separately?

Advancement of Funds

302-2.20   May I receive an advance of funds for my travel and 
transportation expenses?
302-2.21   What requirements must I meet to receive a travel 
advance?
302-2.22   May I receive a travel advance for separation relocation?
Subpart B--Agency Responsibilities
302-2.100   What internal policies must we establish before 
authorizing a relocation allowance?
302-2.101  When may we authorize reimbursement for relocation 
expenses?
302-2.102   Who must authorize and approve relocation expenses?
302-2.103  How must we administer the authorization for relocation 
of an employee?
302-2.104  What information must we provide on the TA?
302-2.105  When an employee transfers between Federal agencies, who 
is responsible for paying the employee's relocation expenses?
302-2.106  May we waive statutory or regulatory limitations relating 
to relocation allowances for employees relocating to/from remote or 
isolated locations?

Time Limits

302-2.110  Are there time factors that we must consider for allowing 
an employee to complete all aspects of relocation?

    Authority: 5 U.S.C. 5721-5734; 20 U.S.C. 905(a).

Subpart A--General Rules

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 302-2.1  When may I begin my transfer or reassignment?

    You may begin your transfer or reassignment only after your agency 
has approved your travel authorization (TA) in writing (paper or 
electronic).


Sec. 302-2.2  May I relocate to my new official duty station before I 
receive a written travel authorization (TA)?

    No, you must have the written TA (paper or electronic) before you 
relocate to your new official duty station.


Sec. 302-2.3  What determines my entitlements and allowances for 
relocation?

    Your entitlements and allowances for relocation are determined by 
the regulatory provisions that are in effect at the time you report for 
duty at your new official station. However, this does not change the 
requirement that all aspects of a relocation must be completed time 
specified in Sec. 302-2.4.


Sec. 302-2.4  What is my effective transfer or appointment date?

    Your effective transfer or appointment date is the date on which 
you report for duty at your new or first official station, 
respectively.


Sec. 302-2.5  May I relocate from a location other than the location 
specified in my relocation travel authorization?

    Yes, you may relocate from a place other than from where you are 
authorized. However, you will be required to pay all additional costs 
incurred for expenses above your authorized travel and transportation 
cost.


Sec. 302-2.6  May I be reimbursed for relocation expenses if I relocate 
to a new official station that is less than 50 miles from my old 
official duty station?

    Generally no; you may not be reimbursed for relocation expenses if 
you relocate to a new official station that is less than 50 miles from 
your old official station, unless the head of the agency or designee 
authorizes an exception. On a case-by-case basis and having considered 
the following criteria, the head of your agency or designee may 
authorize the reimbursement of relocation expenses of less than 50 
miles when he/she determines that it is in the interest of the 
Government: and
    (a) The one way commuting pattern between the old and new official 
station increases by at least 10 miles but no more than 50 miles; or
    (b) There is an increase in the commuting time to the new official 
station; or
    (c) A financial hardship is imposed due to increased commuting 
costs.

Time Limits


Sec. 302-2.7  When may I begin my travel and transportation after 
receiving authorization to do so?

    You and your immediate family member(s) may begin travel 
immediately upon receipt of your authorized TA.

[[Page 58198]]

Sec. 302-2.8  When must I complete all aspects my relocation?

    You and your immediate family member(s) must complete all aspects 
of your relocation within two years from the effective date of your 
transfer or appointment, except as provided in Sec. 302-2.9 or 
Sec. 302-2.10.


Sec. 302-2.9  If I am furloughed to perform active military duty, will 
I have to complete all aspects of the relocation within the time 
limitation?

    No, if you are furloughed to perform active military duty, the 2-
year period to complete all aspects of relocation is exclusive of time 
spent on furlough for active military service.


Sec. 302-2.10  Does the 2-year time period in Sec. 302-2.8 include time 
that I cannot travel and/or transport my household effects due to 
shipping restrictions to or from my post of duty OCONUS?

    No, the 2-year time period in Sec. 302-2.8 does not include time 
that you cannot travel and/or transport your household effects due to 
shipping restriction to or from your post of duty OCONUS.


Sec. 302-2.11  May the 2-year time limitation for completing all 
aspects of a relocation be extended?

    Yes, the 2-year time limitation for completing all aspects of a 
relocation may be extended by your Agency for up to 2 additional years, 
but only if you have received an extension under Sec. 302-11.22.

Service Agreements


Sec. 302-2.12  What is a service agreement?

    A service agreement is a written agreement between you and your 
agency, signed by you and an agency representative, stating that you 
will remain in the service of the Government for a period of time as 
specified in Sec. 302-2.13, after you have relocated.


Sec. 302-2.13  Am I required to sign a service agreement when 
transferring within or outside the continental United States or 
performing renewal agreement travel and what is the minimum period of 
service?

    Yes, you are required to sign a service agreement when transferring 
within or outside the continental United States or performing renewal 
agreement travel. The minimum periods of service are:
    (a) Within the continental United States for a period of service of 
not less than 12 months following the effective date of your transfer;
    (b) Outside the continental United States for an agreed upon period 
of service of not more than 36 months or less than 12 months following 
the effective date of transfer;
    (c) Department of Defense Overseas Dependent School System teachers 
for a period of not less than one school year as determined under 
chapter 25 of title 20, United States Code; and
    (d) For renewal agreement travel a period of not less than 12 
months from the date of return to the same or different overseas 
official station.


Sec. 302-2.14  Will I be penalized for violation of my service 
agreement?

    Yes, if you violate a service agreement (other than for reasons 
beyond your control and which must be accepted by your agency), you 
will have incurred a debt due to the Government and you must reimburse 
all costs that your agency has paid towards your relocation expenses 
including withholding tax allowance (WTA) and relocation income tax 
(RIT) allowance.


Sec. 302-2.15  Must I provide my agency with my actual place of 
residence as soon as I accept a transfer/appointment OCONUS?

    Yes, if you accept a transfer/appointment to an OCONUS location, 
you must immediately provide your agency with the information needed to 
determine your actual place of residence and to document it into your 
service agreement.


Sec. 302-2.16  Must I sign a service agreement for a ``last move home'' 
relocation?

    No, you do not need to sign a service agreement for a ``last move 
home'' relocation.


Sec. 302-2.17  What happens if I fail to sign a service agreement?

    If you fail to sign a service agreement, your agency will not pay 
for your relocation expenses.


Sec. 302-2.18  Can my service agreement be voided by a subsequent 
service agreement?

    No, service agreements which are already in effect cannot be voided 
by subsequent service agreements.


Sec. 302-2.19  If I have more than one service agreement, must I adhere 
to each agreement separately?

    Yes, service agreements can not be grouped together and must be 
adhered to separately. Each agreement is in effect for the period 
specified in the agreement.

Advancement of Funds


Sec. 302-2.20  May I receive an advance of funds for my travel and 
transportation expenses?

    Yes, you may receive an advance of funds for your travel and 
transportation expenses, as prescribed by your agency, except for 
overseas tour renewal agreement travel.


Sec. 302-2.21  What requirements must I meet to receive a travel 
advance?

    Your relocation travel authorization must authorize you to receive 
a travel advance.


Sec. 302-2.22  May I receive a travel advance for separation 
relocation?

    Yes, you may receive a travel advance if approved by your agency.

Subpart B--Agency Responsibilities

    Note to subpart B: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-2.100  What internal policies must we establish before 
authorizing a relocation allowance?

    Before authorizing a relocation allowance, you must set internal 
policies that determine:
    (a) How you will implement the governing policies throughout this 
part;
    (b) How you will determine when a relocation is in the best 
interest of the Government;
    (c) When you will allow a travel advance for relocation expenses;
    (d) Who will authorize and approve relocation travel;
    (e) Under what additional circumstances will you require an 
employee to sign a service agreement; and
    (f) Who is required to sign a service agreement.


Sec. 302-2.101  When may we authorize reimbursement for relocation 
expenses?

    You may authorize reimbursement for relocation expenses:
    (a) When you have determined that an employee's permanent change of 
station is in the best interest of the Government;
    (b) Only after an employee has signed a service agreement to remain 
in service for the period specified in Sec. 302-2.13; and
    (c) When you have determined that the employee's relocation is 
incident to his/her change of official station.


Sec. 302-2.102  Who must authorize and approve relocation expenses?

    The agency head or his/her designee must authorize and approve 
relocation expenses.


Sec. 302-2.103  How must we administer the authorization for relocation 
of an employee?

    To administer the authorization for relocation of an employee, you 
must:
    (a) Issue an employee a TA for relocation before he/she transfers 
to his/her new official station;
    (b) Inform the employee of his/her transfer within a timeframe that 
will provide him/her sufficient time for preparation;

[[Page 58199]]

    (c) Establish timeframes on when employees must submit a TA 
request; and
    (d) Provide new employees with the applicable limitations of their 
travel benefits.


Sec. 302-2.104  What information must we provide on the TA?

    On the TA, you must state the:
    (a) Specific allowances that the employee is authorized; and
    (b) Procedures that the employee is authorized to follow.


Sec. 302-2.105  When an employee transfers between Federal agencies, 
who is responsible for paying the employee's relocation expenses?

    When an employee transfers between Federal agencies, all allowable 
expenses must be paid from the funds of the agency that the employee is 
transferring to. However, in the case of a reduction in force or 
transfer of function, an agreement may be made between the agencies 
concerned as to what relocation allowances will be paid by either 
agency or split between them. This should include the payment of 
expenses for the extended storage of the employee's household goods 
when assigned to an isolated permanent duty station within CONUS or a 
transfer to, from, or between foreign countries.


Sec. 302-2.106  May we waive statutory or regulatory limitations 
relating to relocation allowances for employees relocating to/from 
remote or isolated locations?

    Yes, the agency head or his/her designee may waive any statutory or 
regulatory limitations for employees relocating (to/from a remote or 
isolated location) when determining that failure to waive the 
limitation would cause an undue hardship on the employee.

Time Limits


Sec. 302-2.110  Are there time factors that we must consider for 
allowing an employee to complete all aspects of relocation?

    Yes, you should encourage employees to begin travel as soon as 
possible after authorization of travel is approved and inform employees 
that they must complete all aspects of relocation within a 2-year 
period from his/her effective date of transfer or appointment, unless 
the employee's 2-year period is extended to include:
    (a) Time spent on military furlough;
    (b) Delays caused by overseas shipping or other restrictions; or
    (c) An extension for completion of residence transaction (see 
Sec. 302-11.22 of this chapter).

Subchapter B--Relocation Allowances

PART 302-3--RELOCATION ALLOWANCE BY SPECIFIC TYPE

Subpart A--New Appointee
302-3.1  Who is a new appointee?
302-3.2  As a new appointee or student trainee what relocation 
expenses may my agency pay or reimburse me for incident to a 
permanent change of station to my first official station?
302-3.3  As a new appointee, are there any expenses that my agency 
will not pay?
302-3.4  If my agency authorizes me allowances for relocation, must 
it pay all of the expenses listed in Sec. 302-3.2?
302-3.5  If I travel to my first official station before I have been 
appointed, will I be reimbursed for my relocation expenses?
Subpart B--Transferred Employees
302-3.100  What is a transferred employee?
302-3.101  As a transferred employee what relocation allowances must 
my agency pay or reimburse me for incident to a permanent change of 
station?
Subpart C--Types of Transfers

Relocation of Two or More Employed Immediate Family Members

302-3.200  When a member of my immediate family who is also an 
employee and I are transferring to the same official station, may we 
both receive allowances for relocation?
302-3.201  If my immediate family member and I both transfer to the 
same official station in the interest of the Government, may we both 
claim the same relocation expenses?
302-3.202  If my immediate family member and I both transfer to the 
same official station, may we both claim the same relocation 
allowances for the same non-employee family member?
302-3.203  If I am transferring in the interest of the Government 
and my employed immediate family member(s) transfer is not in the 
interest of the Government, will he/she receive relocation 
allowances?
302-3.204  When an employed immediate family member and I are 
transferring in the interest of the Government, what information 
must we submit to our agency?

Reduction in Force Relocation

302-3.205  If my transfer is involuntary (due to i.e., reduction in 
force, cessation, or transfer of work), is it considered to be in 
the interest of the Government?
302-3.206  If I am re-employed after a separation by reduction in 
force or transfer of functions, may my agency pay me a relocation 
allowance?

Overseas Assignment and Return

302-3.207  Am I eligible to receive relocation allowances for 
overseas assignment and return travel?
302-3.208  What relocation expenses will my agency pay for my 
overseas assignment and return?

Overseas Tour Renewal Agreement

302-3.209  What is overseas tour renewal travel?
302-3.210  What is an overseas tour of duty?
302-3.211   What is an allowance for overseas tour renewal travel?
302-3.212  How do I know if I am eligible to receive an allowance 
for overseas tour renewal travel?
302-3.213  What allowances will I receive for tour renewal travel?
302-3.214  May I receive reimbursement for tour renewal travel when 
my travel is between two places within the United States?
302-3.215  Will I be reimbursed for tour renewal travel from a post 
of duty in Hawaii and return to a post of duty in Alaska or for such 
travel from a post of duty in Alaska and return to a post of duty in 
Hawaii?
302-3.216  When must I begin my first tour renewal travel from 
Alaska or Hawaii?
302-3.217  Will my family or I receive per diem for en route travel 
from my post of duty to my actual place of residence in the U.S.?
302-3.218  Are there any special circumstances when my agency may 
authorize me travel and transportation expenses for my tour renewal 
travel in Alaska or Hawaii?
302-3.219  Is there a limit on how many times I may receive 
reimbursement for tour renewal travel?
302-3.220  May my family and I travel to another U.S. location 
(other than from my actual place of residence) under my tour renewal 
agreement?
302-3.221  If I travel to another place in the U.S. (other than my 
actual place of residence) am I required to spend time at my actual 
place of residence to receive reimbursement?
302-3.222  Will I be reimbursed if I travel to another overseas 
location (instead of the U.S.)?
302-3.223  What happens if I violate my new service agreement under 
a tour renewal assignment?
302-3.224  If I violate my new service agreement, will the 
Government reimburse me for return travel and transportation to my 
actual place of residence?

Prior Return of Immediate Family Members

302-3.225  If my immediate family member(s) return to the U.S. 
before me, will I be reimbursed for transporting part of my 
household goods with my family and the rest of my household goods 
when I return?
302-3.226  Will the Government reimburse me if I am not eligible to 
return with my immediate family member(s) to the U.S. and choose to 
send them at my own expense?
302-3.227  If I become divorced from my spouse while OCONUS will I 
receive reimbursement to return my former spouse and dependents to 
the U.S.?
302-3.228  Is my dependent who turned 21 while overseas entitled to 
return travel to my place of actual residence at the expense of the 
Government?

[[Page 58200]]

Subpart D--Relocation Separation

Overseas to U.S. Return for Separation

302-3.300  Must my agency pay for return relocation expenses for my 
immediate family and me once I have completed my duty OCONUS?
302-3.301  May I transport my household goods to a location other 
than my actual place of residence when I separate from the 
Government?
302-3.302  May my agency pay for my immediate family member(s) and 
my household goods to be returned to the U.S. before I complete my 
service agreement?
302-3.303  May I claim reimbursement for the return of my immediate 
family member(s) or household goods more than once under one service 
agreement?

SES Separation for Retirement

302-3.304  Who is entitled to SES separation relocation allowances?
302-3.305  Who is not eligible for SES separation relocation expense 
allowances?
302-3.306  If I meet the conditions in Sec. 302-3.307, what expenses 
am I allowed under separation for retirement travel?
302-3.307  Under what conditions may I receive separation relocation 
travel for my family and me?
302-3.308  Do I have to provide my agency with any special documents 
before receiving reimbursement for moving expenses?
302-3.309  Where should my travel and transportation begin?
302-3.310  Where will I be authorized to separate?
302-3.311  May I receive reimbursement for travel and transportation 
from an alternate location other than the duty station?
302-3.312  Upon separation, if I elect to reside in a different 
geographical area which is less than 50 miles from my official duty 
station, will I receive reimbursement?
302-3.313  May I have my household goods transported from more than 
one location?
302-3.314  Is there a time limit when I must begin my travel and 
transportation upon separation?
302-3.315  May I be granted an extension on beginning my separation 
travel?
Subpart E--Employee's Temporary Change of Station
302-3.400  What is a ``temporary change of station (TCS)''?
302-3.401  What is the purpose of a TCS?
302-3.402  When am I eligible for a TCS?
302-3.403  Who is not eligible for a TCS?
302-3.404  Under what circumstances will my agency authorize a TCS?
302-3.405  If my agency authorizes a TCS, do I have the option of 
electing payment of per diem expenses under part 301-11 of this 
title?
302-3.406  How long must my assignment be for me to qualify for a 
TCS?
302-3.407  What is the effect on my TCS reimbursement if my 
assignment lasts less than 6 months?
302-3.408  What is the effect on my TCS reimbursement if my 
assignment lasts more than 30 months?
302-3.409  Is there any required minimum distance between an 
official station and a TCS location that must be met for me to 
qualify for a TCS?
302-3.410  Must I sign a service agreement to qualify for a TCS?
302-3.411  What is my official station during my TCS?

Expenses Paid Upon Assignment

302-3.412  What expenses must my agency pay?
302-3.413  Are there other expenses that my agency may pay?

Expenses Paid During Assignment

302-3.414  If my agency authorizes a TCS, will it pay for extended 
storage of my household goods?
302-3.415  How long may my agency pay for extended storage of 
household goods?
302-3.416  Is there any limitation on the combined weight of 
household goods I may transport and store at Government expense?
302-3.417  Will I have to pay any income tax if my agency pays for 
extended storage of my household goods?
302-3.418  Will my agency pay for property management services when 
I am authorized a TCS?
302-3.419  For what property will my agency pay property management 
services?
302-3.420  How long will my agency pay for property management 
services?
302-3.421  What are the income tax consequences when my agency pays 
for property management services?

Expenses Paid Upon Completion of Assignment or Upon Separation From 
Government Service

302-3.422  What expenses will my agency pay when I complete my TCS?
302-3.423  If I separate from Government service upon completion of 
my TCS, what relocation expenses will my agency pay upon my 
separation?
302-3.424  If I separate from Government service prior to completion 
of my TCS, what relocation expenses will my agency pay upon my 
separation?
302-3.425  If I have been authorized successive temporary changes of 
station and reassigned from one temporary official station to 
another, what expenses will my agency pay upon completion of my last 
assignment or my separation from Government service?

Permanent Assignment to Temporary Official Station

302-3.426  How is payment of my TCS expenses affected if I am 
permanently assigned to my temporary official station?
302-3.427  What relocation allowances may my agency pay when I am 
permanently assigned to my temporary official station?
302-3.428  If I am permanently assigned to my temporary official 
station, is there any limitation on the weight of household goods I 
may transport at Government expense to my official station?
302-3.429  Are there any relocation allowances my agency may not pay 
if I am permanently assigned to my temporary official station?
Subpart F--Agency Responsibilities
302-3.500  What governing policies and procedures must we establish 
for paying a relocation allowance under this part 302-3?
302-3.501  Must we establish any specific procedures for paying a 
relocation allowance to new appointees?
302-3.502  What factors should we consider in determining whether to 
authorize a TCS for a long-term assignment?

Service Agreements

302-3.503  Must we require employees to sign a service agreement?
302-3.504  What information should we include in a service 
agreement?
302-3.505  How long must we require an employee to agree to the 
terms of a service agreement?
302-3.506  May we pay relocation expenses if the employee violates 
his/her service agreement?

New Appointees

302-3.507  Once we authorize relocation expenses for new appointees 
or student trainees what expenses must we pay?
302-3.508  What relocation expenses are not authorized for new 
appointees or student trainees?

Overseas Assignment and Return

302-3.509  What policies must we follow when appointing an employee 
to an overseas assignment?
302-3.510  When must we pay return travel for immediate family 
members?
302-3.511  What must we consider when determining return travel for 
immediate family member(s) for compassionate reasons prior to 
completion of the service agreement?
302-3.512  How many times are we required to pay for an employee's 
return travel?

Overseas Tour Renewal Travel

302-3.513  May we allow a travel advance for tour renewal agreement 
travel?
302-3.514  Under what conditions may we pay for tour renewal 
agreement travel?
302-3.515  What special rules must we apply for reimbursement of 
tour renewal travel for employees stationed, assigned, appointed or 
transferred to/from Alaska or Hawaii?

SES Separation for Retirement

302-3.516  What must we do before issuing payment for SES 
separation-relocation travel?
302-3.517  May we issue travel advances for separation relocation?

    Authority: 5 U.S.C. 5721-5734; 20 U.S.C. 905(a).

[[Page 58201]]

Subpart A--New Appointee

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-3.1  Who is a new appointee?

    A new appointee is:
    (a) An individual who is employed with the Federal Government for 
the very first time (including an individual who has performed 
transition activities under section 3 of the Presidential Transition 
Act of 1963 (3 U.S.C. 102 note), and is appointed in the same fiscal 
year as the Presidential inauguration);
    (b) An employee who is returning to the Government after a break in 
service (except an employee separated as a result of reduction in force 
or transfer of functions and is re-employed within one year after such 
action); or
    (c) A student trainee assigned to the Government upon completion of 
his/her college work.


Sec. 302-3.2  As a new appointee or student trainee what relocation 
expenses may my agency pay or reimburse me for incident to a permanent 
change of station to my first official station?

    As a new appointee or student trainee being assigned to a first 
official station your agency may or may not pay or reimburse you the 
relocation expenses indicated for the type of transfer in Tables A and 
B of this section. However, once the decision is made to pay or 
reimburse your relocation expenses, all mandatory relocation allowances 
are reimbursed, unless otherwise stated in the applicable parts of this 
chapter.

 Table A.--Assigned to First Official Station in the Continental United
                             States (CONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation of employee &          1. Shipment of privately owned
 immediate family member(s) (part 302-4   vehicle (POV) (part 302-9,
 of this chapter).                        subpart B of this chapter).
2. Per diem for employee only (part 302- ...............................
 4 of this chapter).
3. Transportation & temporary storage    ...............................
 of household goods (part 302-7 of this
 chapter).
4. Extended storage of household goods   ...............................
 (part 302-8 of this chapter)\1\.
5. Transportation of a mobile home or    ...............................
 boat used as a primary residence in
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).
6. Relocation income tax allowance       ...............................
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 4: Only when assigned to a designated
  isolated official station in CONUS.


   Table B.--Assigned to First Official Station Outside the Continental
                         United States (OCONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation of employee &          1. Shipment of privately owned
 immediate family member(s) (part 302-4   vehicle (POV) (part 302-9 of
 of this chapter).                        this chapter).
2. Per diem employee only (part 302-4).  2. Temporary quarters
                                          subsistence expense (TQSE) is
                                          not authorized in a foreign
                                          area, however, you may be
                                          entitled to the following
                                          under the Department of State
                                          Standard Regulations (DSSR)
                                          (Government Civilians--Foreign
                                          Areas) which is available from
                                          the Superintendent of
                                          Documents, Washington, DC
                                          20402.
                                         (a) Foreign Transfer Allowance
                                          (FTA) (Subsistence Expense)
                                          for quarters occupied
                                          temporarily before departure
                                          from the 50 states or the
                                          District of Columbia for a
                                          official station in a foreign
                                          area incident to a permanent
                                          change of station and travel
                                          to first official station
                                          overseas.
                                         (b) Temporary quarters
                                          subsistence expenses (TQSE)
                                          when a transfer is authorized
                                          to a foreign area.
                                         (c) The miscellaneous expense
                                          portion of the FTA is
                                          authorized incident to first
                                          official station travel to a
                                          foreign area.
3. Transportation & temporary storage    3. Use of relocation service
 of household goods (part 302-7 of this   companies only when transfer
 chapter).                                is to Alaska or Hawaii (part
                                          302-12 of this chapter).
4. Extended storage of household goods   4. Home marketing incentives
 (part 302-8 of this chapter).            only when transfer is to a non-
                                          foreign OCONUS area (part 302-
                                          15 of this chapter).
5. Relocation income tax allowance       ...............................
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------

Sec. 302-3.3  As a new appointee, are there any expenses that my agency 
will not pay?

    Yes, as a new employee, your agency will not pay for expenses that 
are not listed in Sec. 302-3.2 (e.g., per diem for family, cost of 
househunting trip, miscellaneous expense allowance, etc.).


Sec. 302-3.4  If my agency authorizes me allowances for relocation, 
must it pay all of the expenses listed in Sec. 302-3.2?

    Yes, if your agency authorizes you allowances for relocation, it 
must pay all of the expenses listed in Sec. 302-3.2.


Sec. 302-3.5  If I travel to my first official station before I have 
been appointed, will I be reimbursed for my relocation expenses?

    Generally, you may not be reimbursed for relocation expenses 
incurred before you have been appointed to a Federal position and 
signed an agreement to remain in Government service for 12

[[Page 58202]]

months after appointment. However there is an exception for appointees 
who have performed Presidential transition activities. Such appointees 
may be reimbursed allowable travel and transportation expenses incurred 
at any time following the most recent Presidential election once they 
have signed a service agreement. However, appointment must occur in the 
same fiscal year as the Presidential transition activities.

Subpart B--Transferred Employees


Sec. 302-3.100  What is a transferred employee?

    A transferred employee is an employee who transfers from one 
official station to another. This may also include employees separated 
as a result of reduction in force or transfer of functions who are re-
employed within one year after such separation.


Sec. 302-3.101  As a transferred employee what relocation allowances 
must my agency pay or reimburse me for incident to a permanent change 
of station?

    As a transferred employee there are mandatory and discretionary 
relocation expenses. Once an agency decision is made to pay or 
reimburse relocation expenses indicated for the type of transfer in 
tables (A) through (I) of this section, all the mandatory allowance 
must be paid or reimbursed, unless otherwise stated in the applicable 
parts. The discretionary relocation allowances indicated in tables (A) 
through (I) of this section may or may not be paid by the agency.

 Table A.--Transfer Between Official Stations in the Continental United
                             States (CONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Househunting per diem &
 employee & immediate family member(s)    transportation, employee &
 (part 302-4 of this chapter).            spouse only (part 302-5 of
                                          this chapter).
2. Miscellaneous moving expense (part    2. Temporary quarters
 302-16 of this chapter).                 subsistence expense (TQSE)
                                          (part 302-6 of this chapter).
3. Sell or buy residence transactions    3. Shipment of privately owned
 or lease termination expenses (part      vehicle (POV) (part 302-9,
 302-11 of this chapter).                 subpart B of this chapter).
4. Transportation & temporary storage    4. Use of relocation service
 of household goods (part 302-7 of this   companies (part 302-12 of this
 chapter).                                chapter).
5. Extended storage of household goods   5. Property management services
 (part 302-8 of this chapter) \1\.        (part 302-15 of this chapter).
6. Transportation of a mobile home or    6. Home marketing incentives
 boat used as a primary residence in      (part 302-14 of this chapter).
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).
7. Relocation income tax allowance       ...............................
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 5: Only when assigned to a designated
  isolated official station in CONUS.


    Table B.--Transfer From CONUS to an Official Station Outside the
                   Continental United States (OCONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Temporary quarters
 employee & immediate family member(s)    subsistence expense (TQSE) is
 (part 302-4 of this chapter).            not authorized in a foreign
                                          area, however, you may be
                                          entitled to the following
                                          under the Department of State
                                          Standardized Regulations
                                          (DSSR) (Government Civilians-
                                          Foreign Areas):
                                         (a) A Foreign Transfer
                                          Allowance (FTA) for quarters
                                          occupied temporarily before
                                          departure from the 50 states
                                          or the District of Columbia
                                          for a official station in a
                                          foreign area incident to a
                                          permanent change of station
                                          and travel to first official
                                          station overseas.
                                         (b) Temporary quarters
                                          subsistence allowance (TQSA).
2. Miscellaneous expense allowance       2. Property management services
 (part 302-16 of this chapter).           (part 302-15 of this chapter).
3. Transportation & temporary storage    3. Shipment of a privately
 of household goods (part 302-7 this      owned vehicle (part 302-9 of
 chapter).                                this chapter).
4. Extended storage of household goods   4. Use of relocation service
 (part 302-8 of this chapter).            companies when transfer is to
                                          Alaska or Hawaii (part 302-12
                                          of this chapter).
5. Relocation income tax allowance       5. Home marketing incentives
 (RITA) (part 302-17 of this chapter)     when transfer is to Alaska or
 \1\.                                     Hawaii (part 301-15 of this
                                          chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, item 5. Allowed when old and new official stations
  are located in the United States. Also allowed when instead of being
  returned to the former non-foreign area official station, an employee
  is transferred in the interest of the Government to a different non-
  foreign area official station than from the official station from
  which transferred when assigned to the foreign official station.


 Table C.--Transfer From OCONUS Official Station to an Official Station
                                in CONUS
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Shipment of a privately
 employee & immediate family member(s)    owned vehicle (part 302-9 of
 (part 302-4 of this chapter).            this chapter).
2. Temporary quarters subsistence
 expense (TQSE) (part 302-6 of this
 chapter) \1\.

[[Page 58203]]

 
3. Miscellaneous expense allowance
 (part 302-16 of this chapter).
4. Sell & buy residence transaction
 expenses or lease termination expenses
 (part 302-11 of this chapter) \2\.
5. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).
6. Extended storage of household goods
 only when assigned to a designated
 isolated official station in CONUS
 (part 302-8 of this chapter).
7. Relocation income tax allowance
 (RITA) (part 302-17 of this chapter) .
------------------------------------------------------------------------
\1\ Note to Column 1, item 2: A TQSA under the DSSR may be authorized
  preceding final departure subsequent to the necessary vacating of
  residence quarters.
\2\ Note to Column 1, item 4: Allowed when old and new official stations
  are located in the United States. Also allowed when instead of being
  returned to the former non-foreign area official station, an employee
  is transferred in the interest of the Government to a different non-
  foreign area official station than from the official station from
  which transferred when assigned to the foreign official station.


           Table D.--Transfer Between OCONUS Official Stations
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Shipment of a privately
 employee & immediate family member(s)    owned vehicle (POV) (part 302-
 (part 302-4 of this chapter).            9 of this chapter).
2. Temporary quarters subsistence        2. Property management services
 expense (TQSE) (part 302-6 of this       (part 302-15 of this chapter).
 chapter)\1\.
3. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).
4. Miscellaneous expense allowance
 (part 302-16 of this chapter).
5. Extended storage of household goods
 (part 302-8 of this chapter).
6. Relocation income tax allowance
 (RITA) (part 302-17 of this chapter) .
------------------------------------------------------------------------
\1\ Note to Column 1, item 2: TQSA may be authorized under the DSSR.


                 Table E.--Tour Renewal Agreement Travel
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee &
 immediate family member(s) (part 302-4
 of this chapter).
2. Per diem for employee only (part 302-
 4 of this chapter).
------------------------------------------------------------------------


    Table F.--Return From OCONUS Official Station to Place of Actual
                        Residence for Separation
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee &         1. Shipment of a privately
 immediate family member(s) (part 302-4   owned vehicle (POV) (part 302-
 of this chapter).                        9 of this chapter).
2. Per diem for employee only (part 302-
 4 of this chapter).
3. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).
------------------------------------------------------------------------


   Table G.-- Last Move Home for SES Career Appointees Upon Separation
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee &         1. Shipment of privately owned
 immediate family member(s) part 302-4    vehicle (POV) (part 302-9,
 of this chapter).                        subpart B of this chapter).
2. Per diem for employee only (part 302-
 4 of this chapter).
3. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).
4. Transportation of a mobile home or
 boat used as a primary residence in
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).
------------------------------------------------------------------------


[[Page 58204]]


               Table H.--Temporary Change of Station (TCS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Househunting trip expenses
 employee & immediate family member(s)    (part 302-5 of this chapter).
 (part 302-4 of this chapter).
2. Miscellaneous expense allowance       2. Temporary quarters
 (part 302-16 of this chapter).           subsistence expense (TQSE)
                                          (part 302-6 of this chapter).
3. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).
4. Transportation of a mobile home or
 boat used as a primary residence in
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).
5. Transportation of a privately owned
 vehicle (POV)(part 302-9, subpart B of
 this chapter).
6. Relocation income tax allowance
 (RITA) (part 302-17 of this chapter).
7. Property management services (part
 302-15 of this chapter).
------------------------------------------------------------------------


   Table I.--Assignment Under the Government Employees Training Act (5
                            U.S.C. 4109) \1\
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
1. Transportation of employee & immediate family member(s) (part 302-4
 of this chapter).
2. Per Diem for employee (part 302-4 of this chapter).
3. Movement of household goods & temporary storage (part 302-7 of this
 chapter).
------------------------------------------------------------------------
\1\ Note to Table I: The allowances listed in Table I may be authorized
  in lieu of per diem or actual expense allowances. This is not
  considered a permanent change of station.

Subpart C--Types of Transfers

Relocation of Two or More Employed Immediate Family Members


Sec. 302-3.200  When a member of my immediate family who is also an 
employee and I are transferring to the same official station, may we 
both receive allowances for relocation?

    Yes, if you and an immediate family member(s) are both employees 
and are transferring to the same official station in the interest of 
the Government, the allowances under this chapter apply either to;
    (a) Each employee separately and the other is not eligible as an 
immediate family member(s); or
    (b) Only one of the employees considered as head of the household 
and the other is eligible as an immediate family member(s) on the first 
employee's TA.


Sec. 302-3.201  If my immediate family member and I both transfer to 
the same official station in the interest of the Government, may we 
both claim the same relocation expenses?

    No, when separate allowances are authorized under this Sec. 302-
3.201, the employing agency or agencies shall not make duplicate 
reimbursement for the same claimed expenses.


Sec. 302-3.202  If my immediate family member and I both transfer to 
the same official station, may we both claim the same relocation 
allowances for the same non-employee family member?

    No, when both you and your immediate family member transfer in the 
interest of the Government, you must provide your agency with the 
name(s) of non-employee family member(s) who will receive allowances 
under each of your TA. Only one of you may claim allowances for a non-
employee member(s) of your immediate family (non-employee members may 
only be on one TA).


Sec. 302-3.203  If I am transferring in the interest of the Government 
and my employed immediate family member(s) transfer is not in the 
interest of the Government, will he/she receive relocation allowances?

    Yes, your employed immediate family member(s) whose transfer is not 
in the interest of the Government will receive relocation allowances, 
but solely as a member of your immediate family.


Sec. 302-3.204  When an employed immediate family member and I are 
transferring in the interest of the Government, what information must 
we submit to our agency?

    When you and an employed immediate family member are transferring 
in the interest of the Government, you both must provide:
    (a) A signed document stating which method of authorization you 
select (separate or one single authorization); and
    (b) Your agency with a written and signed copy of the names of 
which non-employee member(s) will receive allowances under your TA; if 
you select to receive separate TAs.

Reduction in Force Relocation


Sec. 302-3.205  If my transfer is involuntary (due to i.e., reduction 
in force, cessation, or transfer of work), is it considered to be in 
the interest of the Government?

    Yes, an involuntary transfer (i.e., due to reduction in force, 
cessation, or transfer of work) is considered to be in the interest of 
the Government.


Sec. 302-3.206  If I am re-employed after a separation by reduction in 
force or transfer of functions, may my agency pay me a relocation 
allowance?

    Yes, if you are re-employed after a separation by reduction in 
force or transfer of function, your agency may pay you a relocation 
allowance under the conditions of this chapter if:
    (a) You are employed within one year of your involuntary separation 
date;
    (b) Your new appointment is not temporary; and
    (c) Your new appointment is at a different duty station from where 
your separation occurred and meets the mileage criteria in Sec. 302-2.6 
of this chapter for short distance relocation.

Overseas Assignment and Return


Sec. 302-3.207  Am I eligible to receive relocation allowances for 
overseas assignment and return travel?

    You may be eligible to receive relocation allowances for overseas 
assignment and return travel if you are:
    (a) An employee transferring to, from, or between official stations 
OCONUS; or
    (b) A new appointee to a position OCONUS and at the time of your

[[Page 58205]]

appointment your residence is in an area other than your post of duty.


Sec. 302-3.208  What relocation expenses will my agency pay for my 
overseas assignment and return?

    To determine what relocation expenses your agency will pay for your 
overseas assignment and return, see:
    (a) Section 302-3.2 if you are a new appointee; or
    (b) Section 302-3.101 if you are a transferred employee.

Overseas Tour Renewal Agreement


Sec. 302-3.209  What is overseas tour renewal travel?

    Overseas tour renewal travel refers to travel of you and your 
immediate family returning to your home in the continental U.S., 
Alaska, or Hawaii between overseas tours of duty. See Sec. 302-2.222 
for travel to an actual place of residence in other than the United 
States.


Sec. 302-3.210  What is an overseas tour of duty?

    An overseas tour of duty is an assignment to a post of duty outside 
the continental United States, Alaska or Hawaii.


Sec. 302-3.211  What is an allowance for overseas tour renewal travel?

    An allowance for overseas tour renewal travel is a reimbursement 
for you and your immediate family of roundtrip travel and 
transportation expenses between your overseas post of duty and your 
actual place of residence in the U.S.


Sec. 302-3.212  How do I know if I am eligible to receive an allowance 
for overseas tour renewal travel?

    You are eligible to receive an allowance for overseas tour renewal 
travel if:
    (a) You are on an overseas assignment, and you have completed your 
tour of duty and satisfactorily completed your service agreement time 
period; and
    (b) You are on an overseas assignment and you have signed a new 
service agreement to remain at your overseas post or to transfer to 
another overseas post of duty; or
    (c) You meet the requirements and are eligible for tour renewal 
travel from Alaska or Hawaii under Sec. 302-3.214.


Sec. 302-3.213  What allowances will I receive for tour renewal travel?

    For tour renewal travel, you will receive payment for those 
authorized expenses as stated in item five of Tables A and B of 
Sec. 302-3.101.


Sec. 302-3.214  May I receive reimbursement for tour renewal travel 
when my travel is between two places within the United States?

    You may only receive reimbursement for tour renewal travel when 
your tours are between two places within the U.S. if you are an 
employee who is traveling from Alaska or Hawaii, and:
    (a) You will continue to serve consecutive tours of duty within the 
same state from which you're traveling, and on September 8, 1982 you 
were:
    (1) Serving your tour in one of these areas and have continued to 
do so; or
    (2) En route to a post of duty in Alaska or Hawaii under a written 
service agreement to serve a tour of duty; or
    (3) In the process of performing a tour renewal travel and has 
since then entered into another tour of duty in Alaska or Hawaii;
    (b) Tour renewal agreement travel for recruiting or retention 
purposes is limited to two round trips beginning within 5 years after 
the date the employee first begins any period of consecutive tours of 
duty in Alaska or Hawaii. Employees shall be advised in writing of this 
limitation; or
    (c) You are traveling due to your agency's mission to recruit or 
retain you as an employee to fulfill a position that requires a special 
skilled employee or to fill a position in a remote area.


Sec. 302-3.215  Will I be reimbursed for tour renewal travel from a 
post of duty in Hawaii and return to a post of duty in Alaska or for 
such travel from a post of duty in Alaska and return to a post of duty 
in Hawaii?

    No, you will not be reimbursed for tour renewal travel unless your 
return travel is to a post of duty in the same State that you traveled 
from.


Sec. 302-3.216  When must I begin my first tour renewal travel from 
Alaska or Hawaii?

    You must begin your first tour renewal travel within 5 years of 
your first consecutive tours in either Alaska or Hawaii.


Sec. 302-3.217  Will my family or I receive per diem for en route 
travel from my post of duty to my actual place of residence in the 
U.S.?

    No, your family will not receive per diem for en route travel from 
your post of duty to your actual place of residence in the U.S. and 
return to the same or a different post of duty.


Sec. 302-3.218  Are there any special circumstances when my agency may 
authorize me travel and transportation expenses for my tour renewal 
travel in Alaska or Hawaii?

    Other than as specified in Secs. 302-3.209 through 302-3.226, your 
agency head will only authorize travel and transportation expenses for 
your tour renewal travel in Alaska or Hawaii if it determines that:
    (a) Agency staffing needs are required to recruit or retain 
employees at a post of duty in Alaska or Hawaii; or
    (b) Your agency is in need to recruit employees with special skills 
and knowledge and/or to fill positions in remote areas.


Sec. 302-3.219  Is there a limit on how many times I may receive 
reimbursement for tour renewal travel?

    (a) If you are stationed in a foreign area or in an area other than 
Alaska or Hawaii, your agency may reimburse you for one overseas tour 
renewal trip for each time you complete your service agreement, which 
is related to your post of duty.
    (b) For recruiting and retention purposes of consecutive tours 
served within Alaska and Hawaii, your agency may reimburse you a 
maximum of two round trips which must begin within 5 years after the 
date of your first tour.


Sec. 302-3.220  May my family and I travel to another U.S. location 
(other than from my actual place of residence) under my tour renewal 
agreement?

    Yes, you and your family may travel to another U.S. location (other 
than from your actual place of residence) under your tour renewal 
agreement. However, your agency will only reimburse you for the amount 
of authorized expenses from your post of duty to your actual place of 
residence and return (as appropriate) on a usually traveled route.

    Note to Sec. 302-3.220: If your actual place of residence is 
located in the U.S., you and your family must spend a substantial 
amount of time in the U.S. in order to receive reimbursement.

Sec. 302-3.221  If I travel to another place in the U.S. (other than my 
actual place of residence) am I required to spend time at my actual 
place of residence to receive reimbursement?

    No, you are not required to spend time at your actual place of 
residence to receive reimbursement if you travel to another place in 
the U.S. (other than your actual place of residence).


Sec. 302-3.222  Will I be reimbursed if I travel to another overseas 
location (instead of the U.S.)?

    If you travel to another overseas location (instead of the U.S.), 
you will be reimbursed only if your actual residence is within that 
country in which you are taking your leave, and then you will only be 
reimbursed your authorized travel and transportation expenses. You will 
have to pay any

[[Page 58206]]

expense(s) above your authorized amount.


Sec. 302-3.223  What happens if I violate my new service agreement 
under a tour renewal assignment?

    If you fail to complete your period of service under your new 
service agreement for reasons that are not acceptable to your agency, 
you must pay the Government:
    (a) All transportation and per diem expenses that you received 
during your service agreement period for tour renewal travel of you and 
your immediate family;
    (b) Transportation expenses for family members who traveled 
directly from your former post of duty to your current post of duty; 
and
    (c) All transportation expenses for shipment of household goods 
from your former post to your current post of duty.


Sec. 302-3.224  If I violate my new service agreement, will the 
Government reimburse me for return travel and transportation to my 
actual place of residence?

    If you violate your new service agreement, the Government will 
reimburse you for return travel and transportation to your actual place 
of residence only if you did not receive all of your allowances under a 
previous service agreement in which you successfully completed your 
required period of service. The Government will then authorize you 
reimbursement cost for return travel and transportation expenses from 
your former post of duty to your actual place of residence. If there is 
any additional cost you must pay the difference.

Prior Return of Immediate Family Members


Sec. 302-3.225  If my immediate family member(s) return to the U.S. 
before me, will I be reimbursed for transporting part of my household 
goods with my family and the rest of my household goods when I return?

    Yes, if your family member(s) return to the U.S. before you, you 
will be reimbursed for transporting part of your household goods with 
your family and the rest of the household goods when you return as long 
as the combined weight of the two shipments does not exceed your total 
authorized weight limit.


Sec. 302-3.226  Will the Government reimburse me if I am not eligible 
to return with my immediate family member(s) to the U.S. and choose to 
send them at my own expense?

    Yes, if you pay for the prior return of your eligible immediate 
family member(s), you will be reimbursed when you become eligible for 
return travel and transportation, you must provide your agency with all 
receipts and documentation to support your cost. Your agency will then 
reimburse your expenses, not to exceed your authorized allowance.


Sec. 302-3.227  If I become divorced from my spouse while OCONUS will I 
receive reimbursement to return my former spouse and dependents to the 
U.S.?

    Yes, if you become divorced from your spouse while OCONUS, you will 
receive reimbursement to return your former spouse and dependents to 
their place of actual residence within or outside CONUS.


Sec. 302-3.228  Is my dependent who turned 21 while overseas entitled 
to return travel to my place of actual residence at the expense of the 
Government?

    Your dependent who turned 21 while overseas is entitled to return 
travel to your place of actual residence at the expense of the 
Government only if your dependent traveled overseas as your dependent 
under your TA, but not beyond the end of your current agreed tour of 
duty.

Subpart D--Relocation Separation Overseas to U.S. Return for 
Separation


Sec. 302-3.300  Must my agency pay for return relocation expenses for 
my immediate family and me once I have completed my duty OCONUS?

    Yes, once you have completed your duty OCONUS as specified in your 
service agreement, your agency must pay one-way transportation expenses 
for you, for your family member(s), and for your household goods.


Sec. 302-3.301  May I transport my household goods to a location other 
than my actual place of residence when I separate from the Government?

    Yes, if you have successfully completed your service agreement, you 
may transport your household goods to a location other than your actual 
place of residence when you separate from the Government. However, the 
cost cannot exceed what it would cost to your actual place of 
residence. Any additional cost will be borne by you.


Sec. 302-3.302  May my agency pay for my immediate family member(s) and 
my household goods to be returned to the U.S. before I complete my 
service agreement?

    Yes, your agency may pay for your immediate family member(s) and 
your household goods to be returned to the U.S. before you complete 
your service agreement. However, your reason for not completing your 
service agreement must be determined by your agency as compassionate in 
nature or for circumstances beyond your control.


Sec. 302-3.303  May I claim reimbursement for the return of my 
immediate family member(s) or household goods more than once under one 
service agreement?

    No, you cannot claim reimbursement for the return of your immediate 
family member(s) or household goods more than once under one service 
agreement.

SES Separation for Retirement


Sec. 302-3.304  Who is entitled to SES separation relocation 
allowances?

    You are entitled to SES separation relocation allowances if you 
meet the conditions in Sec. 302-3.307 and you are:
    (a) A career appointee to the SES as defined in 5 U.S.C. 
3132(a)(4); or
    (b) A non-SES appointee who elects to retain SES retirement 
benefits and:
    (1) Has a basic rate of pay at Level V of the Executive Schedule or 
higher; or
    (2) Was previously a career appointee in the SES; or
    (3) Elected under 5 U.S.C. 3392(c) to retain SES retirement 
benefits; or
    (c) A Medical Center Director who:
    (1) Served as a director of a Department of Veterans Affairs 
medical center under 38 U.S.C. 4103(a)(8) as in effect on November 17, 
1988; or
    (2) Separated from Government service on or after October 2, 1992; 
or
    (3) Is not covered in paragraphs (a) or (b) of this section; or
    (d) An immediate family member of an SES employee who died:
    (1) In Government service on or after January 1, 1994; or
    (2) After separating from Government service but before travel and/
or transportation authorized under this subpart were completed.


Sec. 302-3.305  Who is not eligible for SES separation relocation 
expense allowances?

    You are not eligible for SES separation relocation expense 
allowances if:
    (a) You are a career appointee to an SES position, and your 
appointment is a limited term, limited emergency, or a noncareer 
appointment. (See 5 U.S.C. 3132(a)(5) through (7)); or
    (b) You are an appointee to the Government but do not meet the 
criteria status within Sec. 302-3.304.


Sec. 302-3.306  If I meet the conditions in Sec. 302-3.307, what 
expenses am I allowed under separation for retirement travel?

    If you meet the conditions in Sec. 302-3.307, see item 7 of Tables 
A and C in Sec. 302.3.101.

[[Page 58207]]

Sec. 302-3.307  Under what conditions may I receive separation 
relocation travel for my family and me?

    You may receive separation relocation travel for you and your 
family if:
    (a) You are a career appointee as defined in 5 U.S.C. 3132(a)(4), 
and you were transferred or reassigned geographically in the interest 
of and at the expense of the Government from one official station to 
another for permanent duty from:
    (1) An SES career appointment to another SES career appointment; or
    (2) An SES career appointment to an appointment outside the SES at 
a rate of pay equal to or higher than Level V of the Executive 
Schedule, and the employee elects to retain SES retirement benefits 
under 5 U.S.C. 3392; or
    (3) A non-SES career appointment at the time of your transfer or 
assignment, which includes an appointment in a civil service position 
outside the SES, to an SES career appointment;
    (b) At the time of the transfer or reassignment:
    (1) You were eligible to receive an annuity for optional retirement 
under section 8336(a), (b), (c), (e), (f), or (j) or subchapter III of 
chapter 83 (Civil Service Retirement System (CSRS)) or under section 
8412 of subchapter II of chapter 84 (Federal Employees Retirement 
System (FERS)) of title, 5 U.S.C.; or
    (2) You were within 5 years of eligibility to receive an annuity 
for optional retirement under one of the authorities in paragraph 
(b)(1) of this section; or
    (3) You were eligible to receive an annuity based on discontinued 
service retirement or early voluntary retirement under an OPM 
authorization, under section 8336(d) of subchapter III of chapter 83, 
or under 8414(b) of subchapter II of chapter 84 of title 5, U.S.C.;
    (c) You separate from Federal service on or after September 22, 
1988;
    (d) You are eligible to receive an annuity upon separation (or, in 
the case of death, you met the requirements for being considered 
eligible to receive an annuity, as of the date of death) under the 
provisions of subchapter III of chapter 83 (CSRS) or chapter 84 (FERS) 
of title 5, U.S.C., including an annuity based on optional retirement, 
discontinued service retirement, early voluntary retirement under an 
OPM authorization, or disability retirement; and
    (e) You have not previously received separation relocation benefits 
from the Government for retirement.


Sec. 302-3.308  Do I have to provide my agency with any special 
documents before receiving reimbursement for moving expenses?

    Yes, before receiving reimbursement for moving expenses, you must 
submit a request to your agency for authorization and approval of your 
moving expenses with your tentative moving dates and the origin and 
destination location of your planned move, within the timeframe and 
format specified by your agency.


Sec. 302-3.309  Where should my travel and transportation begin?

    Your travel and shipment of your HHG should begin from your last 
official station.


Sec. 302-3.310  Where will I be authorized to separate?

    You will be authorized to separate at the place where you have 
chosen to reside within the United States.


Sec. 302-3.311  May I receive reimbursement for travel and 
transportation from an alternate location other than the duty station?

    You will only be reimbursed for expenses up to the cost of travel 
and transportation expenses from your authorized official station to 
the place in the U.S. you have elected to reside. Any additional cost 
you will have to pay.


Sec. 302-3.312  Upon separation, if I elect to reside in a different 
geographical area which is less than 50 miles from my official duty 
station, will I receive reimbursement?

    No, if upon separation you elect to reside in a different 
geographical area which is less than 50 miles from your official 
station, you will not receive reimbursement.


Sec. 302-3.313  May I have my household goods transported from more 
than one location?

    Yes, you may have your household goods transported from more than 
one location. However, you will only receive reimbursement based on the 
cost of shipment from your official station, in one lot by the most 
economical route to the location where you elect to return. You will 
have to pay for any cost above what is authorized.


Sec. 302-3.314  Is there a time limit when I must begin my travel and 
transportation upon separation?

    Yes, all travel and transportation of household goods must begin no 
later than six months after:
    (a) Your date of separation; or
    (b) The date of death of the employee who died before separation.


Sec. 302-3.315  May I be granted an extension on beginning my 
separation travel?

    Your agency may grant you or your family member (in case of your 
death) an extension on beginning your separation travel, not to exceed 
2 years from your effective date of separation or death if you died 
before separating.

Subpart E--Employee's Temporary Change Of Station


Sec. 302-3.400  What is a ``temporary change of station (TCS)''?

    A TCS means the relocation to a new official station for a 
temporary period while performing a long-term assignment, and 
subsequent return to the previous official station upon completion of 
that assignment.


Sec. 302-3.401  What is the purpose of a TCS?

    A TCS provides agencies an alternative to a long-term temporary 
duty travel assignment which will increase your satisfaction and 
enhance morale, reduce your income tax liability, and save the 
Government money.


Sec. 302-3.402  When am I eligible for a TCS?

    You are eligible for a TCS when you are directed to perform a TCS 
at a long-term duty location, and you otherwise would be eligible for 
payment of temporary duty travel allowances authorized under chapter 
301 of this title. For exceptions, see Sec. 302-3.403.


Sec. 302-3.403  Who is not eligible for a TCS?

    The following individuals are not eligible for a TCS:
    (a) A new appointee;
    (b) An employee assigned to or from a State or local Government 
under the Intergovernmental Personnel Act (5 U.S.C. 3372 et seq.);
    (c) An individual employed intermittently in the Government service 
as a consultant or expert and paid on a daily when-actually-employed 
(WAE) basis;
    (d) An individual serving without pay or at $1 a year; or
    (e) An employee assigned under the Government Employees Training 
Act (5 U.S.C. 4109).


Sec. 302-3.404  Under what circumstances will my agency authorize a 
TCS?

    Your agency will authorize a TCS when:
    (a) It is necessary to accomplish the mission of the agency 
effectively and economically, and
    (b) You are directed to perform a long-term assignment at another 
official station; or
    (c) Your agency otherwise could authorize temporary duty travel and 
pay

[[Page 58208]]

travel allowances, including payment of subsistence expenses, under 
chapter 301 of this title for the long-term assignment; or
    (d) Your agency determines it would be more advantageous, cost and 
other factors considered, to authorize a long-term assignment; and
    (e) You meet any additional conditions your agency has established.


Sec. 302-3.405  If my agency authorizes a TCS, do I have the option of 
electing payment of per diem expenses under part 301-11 of this title?

    No, you do not have the option of electing payment of per diem 
expenses under part 301-11 of this title if your agency authorized a 
TCS.


Sec. 302-3.406  How long must my assignment be for me to qualify for a 
TCS?

    To qualify for a TCS, your assignment must be not less than 6 
months, nor more than 30 months.


Sec. 302-3.407  What is the effect on my TCS reimbursement if my 
assignment lasts less than 6 months?

    Your agency may authorize a TCS only when a TCS is expected to last 
6 months or more. If your assignment is cut short for reasons other 
than separation from Government service, you will be paid TCS expenses.


Sec. 302-3.408  What is the effect on my TCS reimbursement if my 
assignment lasts more than 30 months?

    If your assignment exceeds 30 months, your agency:
    (a) Must permanently assign you to your temporary official station 
or return you to your previous official station;
    (b) May not pay for extended storage or property management 
services incurred after the last day of the thirtieth month; and
    (c) Must pay the expenses of returning you and your immediate 
family and household goods to your previous official station unless you 
are permanently assigned to your temporary official station.


Sec. 302-3.409  Is there any required minimum distance between an 
official station and a TCS location that must be met for me to qualify 
for a TCS?

    No, there is no required minimum distance between an official 
station and a TCS location that must be met for you to qualify for a 
TCS. However, your agency may establish the area within which it will 
not authorize a TCS.


Sec. 302-3.410  Must I sign a service agreement to qualify for a TCS?

    No, you do not need to sign a service agreement to qualify for a 
TCS.


Sec. 302-3.411  What is my official station during my TCS?

    Your official station during your TCS is the location of your TCS.

Expenses Paid Upon Assignment


Sec. 302-3.412  What expenses must my agency pay?

    Your agency must pay:
    (a) Travel, including per diem, for you and your immediate family 
under part 302-4 of this chapter;
    (b) Transportation and temporary storage of your household goods 
under part 302-7 of this chapter;
    (c) Extended storage when it is necessary as approved by your 
agency under part 302-8 of this chapter;
    (d) Transportation of a mobile home instead of transportation of 
household goods under part 302-10 of this chapter;
    (e) A miscellaneous expenses allowance under part 302-16 of this 
chapter;
    (f) Transportation of a privately owned vehicle(s) under part 302-9 
of this chapter; and
    (g) A relocation income tax allowance under part 302-17 of this 
chapter for additional income taxes you incur on payments your agency 
makes under the authority of this section for your relocation expenses.


Sec. 302-3.413  Are there other expenses that my agency may pay?

    Yes, your agency may pay:
    (a) Househunting trip expenses under part 302-5 of this chapter;
    (b) Temporary quarters subsistence expenses under part 302-6 of 
this chapter; and
    (c) Reimbursement for Property Management Services under part 302-
15 of this chapter.

Expenses Paid During Assignment


Sec. 302-3.414  If my agency authorizes a TCS, will it pay for extended 
storage of my household goods?

    Yes, if your agency authorizes a TCS, it will pay for extended 
storage when it is necessary. Extended storage expenses include:

(a) Packing/unpacking;
(b) Crating/uncrating;
(c) Transporting to and from place of storage;
(d) Charges while in storage; and
(e) Other necessary charges directly related to storage.


Sec. 302-3.415  How long may my agency pay for extended storage of 
household goods?

    Your agency may pay for extended storage of household goods for the 
duration of your TCS.


Sec. 302-3.416  Is there any limitation on the combined weight of 
household goods I may transport and store at Government expense?

    Yes, the maximum combined weight is 18,000 pounds net weight. If 
you transport and/or store household goods in excess of the maximum 
weight allowance, you will be responsible for any excess cost.


Sec. 302-3.417  Will I have to pay any income tax if my agency pays for 
extended storage of my household goods?

    You will be subject to income taxes on the amount of extended 
storage expenses your agency pays. However, your agency will pay you a 
relocation income tax allowance under part 302-17 of this chapter for 
substantially all of the additional Federal, State and local income 
taxes you incur on the expenses your agency pays.


Sec. 302-3.418  Will my agency pay for property management services 
when I am authorized a TCS?

    Yes, your agency will reimburse you directly for expenses you incur 
or make payments on your behalf to a relocation services company, if 
you so choose. The term ``property management services'' refers to a 
program provided by a private company for a fee, which assists you in 
managing your residence at your previous official station as a rental 
property. Services provided by the company may include, but are not 
limited to, obtaining a tenant, negotiating a lease, inspecting the 
property regularly, managing repairs and maintenance, enforcing lease 
terms, collecting rent, paying the mortgage and other carrying expenses 
from rental proceeds and/or fund of the employee, and accounting for 
the transactions and providing periodic reports to the employee.


Sec. 302-3.419  For what property will my agency pay property 
management services?

    Your agency will only pay for the property from which you commuted 
to/from work on a daily basis at your previous official station.


Sec. 302-3.420  How long will my agency pay for property management 
services?

    Your agency will pay for property management services for the 
duration of your TCS.


Sec. 302-3.421  What are the income tax consequences when my agency 
pays for property management services?

    When your agency pays for property management services:
    (a) You will be taxed on the amount of property management expenses 
your agency pays, whether it reimburses you

[[Page 58209]]

directly for your expenses or pays a relocation services company to 
manage your residence; and
    (b) Your agency will pay you a relocation income tax allowance 
under part 302-17 of this chapter for substantially all of the 
additional Federal, State and local income taxes you incur on the 
expenses your agency pays.

    Note to Sec. 302-3.421: You may wish to consult with a tax 
advisor to determine whether you will incur any additional tax 
liability, unrelated to your agency's payment of your property 
management expenses, as a result of maintaining your residence as a 
rental property.

Expenses Paid Upon Completion of Assignment or Upon Separation From 
Government Service


Sec. 302-3.422  What expenses will my agency pay when I complete my 
TCS?

    Your agency will pay for the following expenses in connection with 
your return to your previous official station:
    (a) Travel, including per diem, for you and your immediate family 
under part 302-4 of this chapter;
    (b) Transportation and temporary storage of your household good 
under part 302-7 of this chapter;
    (c) Transportation of a mobile home instead of transportation of 
our household goods under part 302-10 of this chapter;
    (d) Temporary quarters subsistence expenses under part 302-6 of 
this chapter;
    (e) A miscellaneous expenses allowance under part 302-16 of this 
chapter;
    (f) Transportation of a privately owned vehicle(s) under part of 
this chapter; and
    (g) A relocation income tax allowance under part 302-17 of this 
chapter for additional income taxes you incur on payments your agency 
makes under the authority of this part for your relocation expenses.


Sec. 302-3.423  If I separate from Government service upon completion 
of my TCS, what relocation expenses will my agency pay upon my 
separation?

    If you separate from Government service upon completion of your 
TCS, your agency will upon your separation, pay the same relocation 
expenses it would have paid had you not separated from Government 
service upon completion of your TCS.


Sec. 302-3.424  If I separate from Government service prior to 
completion of my TCS, what relocation expenses will my agency pay upon 
my separation?

    If you separate from Government service prior to completion of your 
TCS for reasons beyond your control that are acceptable to your agency, 
your agency will pay the same relocation expenses it would pay under 
Sec. 302-3.423. If this is not the case, the expenses your agency pays 
may not exceed the reimbursement that you would have received under 
this chapter or chapter 301 of this title whichever your agency 
determines to be in the best interest of the Government.


Sec. 302-3.425  If I have been authorized successive temporary changes 
of station and reassigned from one temporary official station to 
another, what expenses will my agency pay upon completion of my last 
assignment or my separation from Government service?

    Your agency will pay the expenses authorized in Sec. 302-3.422 for 
your relocation from your current temporary official station to your 
last permanent official station.

Permanent Assignment to Temporary Official Station


Sec. 302-3.426  How is payment of my TCS expenses affected if I am 
permanently assigned to my temporary official station?

    Payment of TCS expenses stops once your temporary official station 
becomes your permanent official station. Your agency may not pay any 
TCS expenses incurred beginning the day your temporary official station 
becomes your permanent official station.


Sec. 302-3.427  What relocation allowances may my agency pay when I am 
permanently assigned to my temporary official station?

    When you are permanently assigned to your temporary official 
station, your agency may pay:
    (a) Travel, including per diem, in accordance with part 302-4 of 
this chapter, for one round trip between your temporary official 
station and your previous official station, for you and members of your 
immediate family who relocated to the temporary official station with 
you. Your agency may also pay the same expenses for a one-way trip from 
the previous official station to the new permanent official station for 
any immediate family members who did not accompany you to the temporary 
official station;
    (b) Residence transaction expenses under part 302-11 of this 
chapter;
    (c) Property management expenses under part 302-15 of this chapter;
    (d) Relocation services under part 302-12 of this chapter;
    (e) Temporary quarters subsistence expenses in accordance with part 
302-6 of this chapter;
    (f) Transportation of household goods not previously transported to 
the temporary official station under part 302-7 of this chapter; and
    (g) Transportation of a privately owned vehicle(s) not previously 
transported to the temporary official station under Sec. 302-9.6 of 
this chapter.


Sec. 302-3.428  If I am permanently assigned to my temporary official 
station, is there any limitation on the weight of household goods I may 
transport at Government expense to my official station?

    Yes. If you are permanently assigned to your temporary official 
station, you are limited to 18,000 pounds net weight for household 
goods you may transport at Government expense to your official station. 
This maximum weight will be reduced by the weight of any household 
goods transported at Government expense to your temporary official 
station under your TCS authorization. Subject to the 18,000 pound 
limit, your agency will pay to transport any household goods in 
extended storage to your official station. Additionally, if you change 
your residence as a result of your permanent assignment to your 
temporary official station, your agency may pay for transporting your 
household goods, subject to the 18,000-pound limit, between the 
residence you occupied during your temporary assignment and your new 
residence.


Sec. 302-3.429  Are there any relocation allowances my agency may not 
pay if I am permanently assigned to my temporary official station?

    If you are permanently assigned to your temporary official station, 
your agency may not pay:
    (a) Expenses of a househunting trip for you and your spouse to your 
temporary official station under part 302-5 of this chapter; or
    (b) Residence transaction expenses for selling a residence or 
breaking a lease at the temporary official station under part 302-11 of 
this chapter.

Subpart F--Agency Responsibilities

    Note to subpart F: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-3.500  What governing policies and procedures must we 
establish for paying a relocation allowance under this part 302-3?

    You must establish how you will implement policies that are 
required for this part, which include;

[[Page 58210]]

    (a) When you will pay relocation expenses if an employee violates 
his/her service agreement;
    (b) When you will authorize separate relocation allowances to an 
employee and an employee's immediate family member that are both 
transferring to the same official station;
    (c) When you will grant an employee and/or the employee's immediate 
family member(s) an extension on beginning separation travel;
    (d) When you will allow an employee to arrange his/her own 
relocation upon separation;
    (e) When you will authorize a temporary change of station (TCS);
    (f) When you will define an area not to reimburse for a TCS;
    (g) When you will pay extended storage of household goods for TCS; 
and
    (h) What relocation allowances you will and will not pay when an 
employee is permanently assigned to a temporary official station.


Sec. 302-3.501  Must we establish any specific procedures for paying a 
relocation allowance to new appointees?

    Yes, you must establish specific guidelines for paying a relocation 
allowance to new appointees. These guidelines must establish the:
    (a) Criteria in accordance with 5 CFR part 572 on how you will 
determine if a new appointee is eligible for the relocation allowances 
authorized therein; and
    (b) Procedures which will provide new appointees with information 
surrounding his/her benefits.


Sec. 302-3.502  What factors should we consider in determining whether 
to authorize a TCS for a long-term assignment?

    You should consider the following factors in determining whether to 
authorize a TCS:
    (a) Cost considerations. You should consider the cost of each 
alternative. A long-term temporary duty travel assignment requires the 
payment of either per diem or actual subsistence expenses for the 
entire period of the assignment. This could be very costly to the 
agency over an extended period. A TCS will require fairly substantial 
relocation allowance payments at the beginning and end of the 
assignment, and less substantial payments for extended storage and 
property management services, when authorized, during the period of the 
assignment. Agencies should estimate the total cost of each alternative 
and authorize the one that is most advantageous for the agency, cost 
and other factors considered;
    (b) Tax considerations. An employee who performs a temporary duty 
travel assignment exceeding one year at a single location is subject to 
income taxation of his/her travel expense reimbursements. The Income 
Tax Reimbursement Allowance (ITRA) allows for the reimbursement of 
Federal, State and local income taxes incurred as a result of an 
extended temporary duty assignment (see Secs. 301-11.501 through 301-
11.640 of this title). An employee who is authorized and performs a TCS 
also will be subject to income taxation of some, but not all, of his/
her TCS expenses. You will pay an offsetting Relocation Income Tax 
(RIT) allowance on an employee's TCS expense reimbursements; and
    (c) Employee concerns. The long-term assignment of an employee away 
from his/her official station and immediate family may negatively 
affect the employee's morale and job performance. Such negative effects 
may be alleviated by authorizing a TCS so the employee can transport 
his/her immediate family and/or household goods at Government expense 
to the location where he/she will perform the long-term assignment. You 
should consider the effects of a long-term temporary duty travel 
assignment on an employee when deciding whether to authorize a TCS.

Service Agreements


Sec. 302-3.503  Must we require employees to sign a service agreement?

    Yes, you must require employees to sign a service agreement if the 
employee is receiving reimbursement for relocation travel expenses, 
except as provided in Sec. 302-3.410 for a temporary change of station.


Sec. 302-3.504  What information should we include in a service 
agreement?

    The service agreement should include, but not be limited to the 
following:
    (a) The employee's name;
    (b) The employee's effective date of transfer or appointment;
    (c) The employee's actual place of residence at the time of 
appointment;
    (d) The name of all dependents that are authorized to travel under 
the TA;
    (e) Detailed information regarding the employee's obligation to 
repay funds spent on his/her relocation as a debt due the Government if 
the service agreement is violated;
    (f) The employee's agreed period of time (see Sec. 302-3.505) to 
remain in service; and
    (g) The employee's signature accepting the terms of the agreement.


Sec. 302-3.505  How long must we require an employee to agree to the 
terms of a service agreement?

    You must require an employee to agree to the terms of a service 
agreement:
    (a) Within the continental United States for a period of service of 
not less than 12 months following the effective date of your transfer;
    (b) Outside the continental United States for an agreed upon period 
of service of not more than 36 months or less than 12 months following 
the effective date of transfer;
    (c) Department of Defense Overseas Dependent School System teachers 
for a period of not less than one school year as determined under 
chapter 25 of Title 20, United States Code; and
    (d) Renewal agreement travel for a period of not less than 12 
months from the date of return to the same or different overseas duty 
station.


Sec. 302-3.506  May we pay relocation expenses if the employee violates 
his/her service agreement?

    If an employee does not fulfill the terms of the service agreement, 
the employee is indebted to the Government for all relocation expenses 
that have been reimbursed to the employee or that have been paid 
directly by the Government. However, if the reasons for not fulfilling 
the terms of the service agreement are beyond the employee's control 
and acceptable to the agency, you may release the employee from the 
service agreement and waive any indebtedness.

New Appointees


Sec. 302-3.507  Once we authorize relocation expenses for new 
appointees or student trainees what expenses must we pay?

    Once you authorize relocation expenses for new appointees or 
student trainees, you must pay expenses in accordance with Sec. 302-
3.2.


Sec. 302-3.508  What relocation expenses are not authorized for new 
appointees or student trainees?

    You must not pay any expenses to new appointees or student trainees 
for a relocation that are not listed under Sec. 302-3.2.

Overseas Assignment And Return


Sec. 302-3.509  What policies must we follow when appointing an 
employee to an overseas assignment?

    When appointing an employee to an overseas assignment, you must:
    (a) Establish the employee's actual place of residence at the time 
of appointment and state it in his/her service agreement;

[[Page 58211]]

    (b) Use guidance in 8 U.S.C. 1101(33) which states that ``The term 
residence means the place of general abode; the place of general abode 
of a person means his principal, actual dwelling place in fact, without 
regard to intent'', for establishing places of residence; and
    (c) Require the employee to sign the service agreement prior to 
his/her relocation.


Sec. 302-3.510  When must we pay return travel for immediate family 
members?

    You must pay transportation expenses for one-way return travel of 
immediate family members when the employee has successfully completed 
his/her service agreement period OCONUS.


Sec. 302-3.511  What must we consider when determining return travel 
for immediate family member(s) for compassionate reasons prior to 
completion of the service agreement?

    You must determine that the public interest requires the return of 
the immediate family for compelling personal reasons of a humanitarian 
or compassionate nature, which may involve:
    (a) His/her physical or mental health;
    (b) The death of a member of the immediate family;
    (c) Obligations imposed by authority or circumstances over which 
the individual has no control;
    (d) The divorce or annulment of the employee's marriage; or
    (e) A dependent that traveled to post of duty on the employee's 
authorized TA and has now reached his/her 21st birthdate.


Sec. 302-3.512  How many times are we required to pay for an employee's 
return travel?

    You must pay for return travel and transportation of an employee 
only once at the end of each agreed period of service.

Overseas Tour Renewal Travel


Sec. 302-3.513  May we allow a travel advance for tour renewal 
agreement travel?

    No, you cannot allow a travel advance for tour renewal agreement 
travel.


Sec. 302-3.514  Under what conditions must we pay for tour renewal 
agreement travel?

    You must pay tour renewal agreement travel when:
    (a) The employee has completed the agreed upon period of service 
outside CONUS;
    (b) The employee has agreed to serve another OCONUS tour of duty at 
the same or different duty station; and
    (c) You have determined that the employee meets the special rules 
under Sec. 302-3.515 for Alaska or Hawaii.


Sec. 302-3.515  What special rules must we apply for reimbursement of 
tour renewal travel for employees stationed, assigned, appointed or 
transferred to/from Alaska or Hawaii?

    The following rules apply:
    (a) If on September 8, 1982 the employee was serving or committed 
to serve a tour of duty in Alaska or Hawaii then the employee shall 
continue to receive reimbursement for tour renewal agreement travel;
    (b) After September 8, 1982 you must determine that tour renewal 
agreement travel expenses are necessary for the purposes of recruiting 
and retaining employees and you must inform employees in writing that 
tour renewal agreement travel for the purposes of recruiting and 
retention is limited to two round trips beginning within 5 years after 
the date the employee first begins any period of consecutive tours of 
duty.

SES Separation for Retirement


Sec. 302-3.516  What must we do before issuing payment for SES 
separation-relocation travel?

    Before issuing payment for separation-relocation travel, you must 
establish timeframes for employees to submit request for authorization 
and approval of relocation expenses.


Sec. 302-3.517  May we issue travel advances for separation relocation?

    No, travel advances for separation relocation may not be 
authorized.

SUBCHAPTER C--PERMANENT CHANGE OF STATION (PCS) ALLOWANCES FOR 
SUBSISTENCE AND TRANSPORTATION EXPENSES

PART 302-4--ALLOWANCES FOR SUBSISTENCE AND TRANSPORTATION

Subpart A--Eligibility
Sec.
302-4.1  What is a permanent change of station (PCS)?
302-4.2  Am I eligible for subsistence and transportation allowances 
for PCS travel under this part?
Subpart B--Travel Expenses
302-4.100  What PCS travel expenses will my immediate family members 
receive?
302-4.101  Must my immediate family member(s) and I begin PCS travel 
at the old official station and end at the new official station?
Subpart C--Per Diem
302-4.200  What per diem rate will I receive for en route relocation 
travel within CONUS?
302-094.201  How are my authorized en route travel days and per diem 
determined for relocation travel?
302-4.202  Are there any circumstances in which a per diem allowance 
for my immediate family members is not allowed?

Transferred Employees Only

302-4.203  How much per diem will my spouse receive if he/she 
accompanies me while I am performing PCS travel?
302-4.204  If my spouse does not accompany me but travels 
unaccompanied at a different time, what per diem rate will he/she 
receive?
302-4.205  If my spouse and I travel on the same days along the same 
general route by using more than one POV, is my spouse considered 
unaccompanied?
302-4.206  How much per diem will my immediate family receive?
Subpart D--Mileage Rates for Use Of POV
302-4.300  What is the POV mileage rate for PCS travel?
302-4.301  Do the rates in Sec. 302-4.300 apply if I am performing 
overseas tour renewal agreement travel?
302-4.302  Are there circumstances that would allow me to receive a 
higher mileage rate OCONUS?
Subpart E--Daily Driving Distance Requirements
302-4.400  Will I be required to drive a minimum distance per day?
302-4.401  Are there exceptions to this daily minimum?
302-4.402  Will I be required to document the circumstances causing 
the delay?
302-4.403  Does this exception require authorization by my approving 
official?
Subpart F--Use of More Than One POV
302-4.500  If I am authorized to use more than one POV, what are the 
allowances?
302-4.501  If I use an additional POV that was not authorized for 
PCS travel, will I be reimbursed for the additional POV?
Subpart G--Advance Of Funds
302-4.600  May I request an advance of funds for per diem and 
mileage allowances for PCS travel?
Subpart H--Agency Responsibilities
302-4.700  What governing policies must we establish for payment of 
allowances for subsistence and transportation expenses?
302-4.701  What PCS travel expenses must we pay?
302-4.702  What PCS travel expenses must we pay for the employee's 
immediate family members?
302-4.703  How do we compute the per diem for an established minimum 
driving distance per day?
302-4.704  Must we require a minimum driving distance per day?
302-4.705  What are the allowances if the employee uses more POVs 
than authorized?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905 (a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.

[[Page 58212]]

Subpart A--Eligibility

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-4.1  What is a permanent change of station (PCS)?

    A permanent change of station (PCS) is an assignment of a new 
appointee to an official station or the transfer of an employee from 
one official station to another on a permanent basis.


Sec. 302-4.2  Am I eligible for subsistence and transportation 
allowances for PCS travel under this part?

    Yes, you are eligible for subsistence and transportation allowances 
for PCS travel if your agency specifically authorizes relocation 
expenses under this part and are:
    (a) Transferred employees (within or outside CONUS);
    (b) New appointees (within or outside CONUS); and
    (c) An employees assigned to posts of duty outside CONUS in 
connection with either overseas tour renewal agreement travel or return 
travel to places of residence for separation.

    Note to Sec. 302-4.2: Also see table at Secs. 302-3.2 and 302-
3.101.

Subpart B--Travel Expenses


Sec. 302-4.100  What PCS travel expenses will my immediate family 
members receive?

    Except as specifically provided in Sec. 302-4.202, the rules (for 
TDY travel) in chapter 301 of this title will be used for payment of 
the travel expenses of your immediate family members.


Sec. 302-4.101  Must my immediate family member(s) and I begin PCS 
travel at the old official station and end at the new official station?

    No, if an alternate location is used, reimbursement is limited to 
the allowable cost by the usually traveled route between your old and 
new official stations.

Subpart C--Per Diem


Sec. 302-4.200  What per diem rate will I receive for en route 
relocation travel within CONUS?

    Your per diem for en route relocation travel between your old and 
new official station will be at the standard CONUS rate (see Appendix A 
of part 302.17 of this chapter). You will be reimbursed in accordance 
with Secs. 301-11.100 through 301-11.102 of this title.


Sec. 302-4.201  How are my authorized en route travel days and per diem 
determined for relocation travel?

    Your authorized en route travel days and per diem are determined as 
follows: The number of authorized travel days is the actual number of 
days used to complete the trip, but not to exceed an amount based on a 
minimum driving distance per day determined to be reasonable by your 
agency. The minimum driving distance shall be not less than an average 
of 300 miles per calendar day. An exception to the daily minimum 
driving distance may be made when delay is beyond control of the 
employee, such as when it results from acts of God or restrictions by 
Government officials; when the employee is physically handicapped; or 
for other reasons acceptable to the agency.


Sec. 302-4.202  Are there any circumstances in which a per diem 
allowance for my immediate family members is not allowed?

    Yes, per diem for your immediate family members cannot be 
authorized if you are:
    (a) A new appointee;
    (b) Assigned to posts of duty outside CONUS returning to place of 
actual residence for separation; or
    (c) Being relocated under the Government Employees Training Act (5 
U.S.C. 4109).

Transferred Employees Only


Sec. 302-4.203  How much per diem will my spouse receive if he/she 
accompanies me while I am performing PCS travel?

    The maximum amount your spouse may receive if he/she accompanies 
you while you are performing PCS travel is three-fourths of your daily 
per diem rate.


Sec. 302-4.204  If my spouse does not accompany me but travels 
unaccompanied at a different time, what per diem rate will he/she 
receive?

    If your spouse does not accompany you but travels unaccompanied at 
a different time, he/she will receive the same per diem rate to which 
you are entitled.


Sec. 302-4.205  If my spouse and I travel on the same days along the 
same general route by using more than one POV, is my spouse considered 
unaccompanied?

    No; for per diem purposes, you and your spouse are considered to be 
traveling together if you travel on the same days along the same 
general route by using more than one POV.


Sec. 302-4.206  How much per diem will my immediate family receive?

    Immediate family members age 12 or older receive three-fourths of 
your per diem rate, and children under 12 receive one-half of your per 
diem rate.

Subpart D--Mileage Rates for Use of POV


Sec. 302-4.300  What is the POV mileage rate for PCS travel?

    When PCS travel by POV is approved, rates for payment of mileage 
allowances are taken from the following table:

------------------------------------------------------------------------
                    Occupants of POV                       Mileage rate
------------------------------------------------------------------------
Employee only; or one member of immediate family........           $0.15
Employee and one member; or two members of immediate                0.17
 family.................................................
Employee and two members; or three members of immediate             0.19
 family.................................................
Employee and three or more members; or four or more                 0.20
 members of immediate family............................
------------------------------------------------------------------------

Sec. 302-4.301  Do the rates in Sec. 302-4.300 apply if I am performing 
overseas tour renewal agreement travel?

    No, POV mileage must not be authorized for overseas tour renewal 
agreement travel.


Sec. 302-4.302  Are there circumstances that would allow me to receive 
a higher mileage rate OCONUS?

    Yes, your agency may authorize a higher mileage rate at a rate not 
to exceed the maximum rate prescribed in Sec. 301-10.303 of this title 
when:
    (a) You are expected to use the POV on official business at the new 
official station;
    (b) The common carrier rates for the facilities provided between 
the old and new official stations, the related constructive taxicab 
fares to and from terminals, and the per diem allowances prescribed 
under this part justify a higher mileage rate as advantageous to the 
Government as determined by your agency; or

[[Page 58213]]

    (c) The costs of driving the POV to, from, or between official 
stations located outside CONUS justify a higher mileage rate as 
advantageous to the Government.

Subpart E--Daily Driving Distance Requirements


Sec. 302-4.400  Will I be required to drive a minimum distance per day?

    Yes, your agency may establish a reasonable minimum driving 
distance that may be more than, but not less than an average of 300 
miles per calendar day.


Sec. 302-4.401  Are there exceptions to this daily minimum?

    Yes, your agency may authorize exceptions to the daily minimum 
driving distance when there is a delay beyond your control such as acts 
of God, restrictions by Governmental authorities, or other acceptable 
reasons; e.g., a physical handicap or special needs. Your agency must 
have a designated approving official authorize the exception.


Sec. 302-4.402  Will I be required to document the circumstances 
causing the delay?

    Yes, you must provide a statement on your travel claim explaining 
the circumstances that caused the delay.


Sec. 302-4.403  Does this exception require authorization by my 
approving official?

    Yes, authorization by your approving official is required for any 
exception to the daily minimum driving distance.

Subpart F--Use of More Than One POV


302-4.500  If I am authorized to use more than one POV, what are the 
allowances?

    When you are authorized to use more than one POV, the allowances 
under Secs. 302-4.300 and 302-4.302 apply for each POV.


Sec. 302-4.501  If I use an additional POV that was not authorized for 
PCS travel, will I be reimbursed for the additional POV?

    No, your agency must authorize you reimbursement of the use of more 
than one POV before you are entitled to reimbursement.

Subpart G--Advance of Funds


Sec. 302-4.600  May I request an advance of funds for per diem and 
mileage allowances for PCS travel?

    You may request advance of funds for per diem and mileage 
allowances for PCS travel, except for overseas tour renewal agreement 
travel.

Subpart H--Agency Responsibilities

    Note to subpart H: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency, unless 
otherwise noted.

Sec. 302-4.700  What governing policies must we establish for payment 
of allowances for subsistence and transportation expenses?

    For payment of allowances for subsistence and transportation 
expenses, you must establish policy and procedures governing:
    (a) How you will implement the regulations throughout this part;
    (b) A reasonable minimum driving distance per day that may be more 
than, but not less than an average of 300 miles per calendar day when 
use of a POV is used for PCS travel and when you will authorize an 
exception;
    (c) Designation of an agency approving official who will authorize 
an exception to the daily minimum driving distance; and
    (d) When you will authorize the use of more than one POV for PCS 
travel.


Sec. 302-4.701  What PCS travel expenses must we pay?

    Except as specifically provided in this chapter, PCS travel 
expenses you must pay are:
    (a) Per diem;
    (b) Transportation costs; and
    (c) Other travel expenses in accordance with 5 U.S.C. 5701-5709 and 
chapter 301 of this title.


Sec. 302-4.702  What PCS travel expenses must we pay for the employee's 
immediate family members?

    Except as specifically provided in this chapter, the reimbursement 
limits in chapter 301 of this title govern payment of travel expenses 
you must pay for the employee's immediate family members.


Sec. 302-4.703  How do we compute the per diem for an established 
minimum driving distance per day?

    Per diem for an established minimum driving distance per day is 
computed based on the lodgings-plus per diem system as described in 
Secs. 301-11.100 through 301-11.103 of this title.


Sec. 302-4.704  Must we require a minimum driving distance per day?

    Yes, you must establish a minimum driving distance not less than an 
average of 300 miles per day. However, an exception to the daily 
minimum driving distance may be made when the delay is:
    (a) Beyond control of the employee, e.g., results from acts of God 
or restrictions by Government officials;
    (b) Due to a physical handicap; or
    (c) For other reasons acceptable to you.


Sec. 302-4.705  What are the allowances if the employee uses more POVs 
than authorized?

    If the employee uses more POVs than authorized, reimbursement will 
be made as if all persons traveled in the number of POVs that you 
authorized.

PART 302-5--ALLOWANCE FOR HOUSEHUNTING TRIP EXPENSES

Subpart A--Employee's Allowance for Househunting Trip Expenses

Sec.
302-5.1   What is a ``househunting trip''?
302-5.2   What is the purpose of the househunting trip expenses 
allowance?
302-5.3  Am I eligible for a househunting trip expenses allowance?
302-5.4  Who is not eligible for a househunting trip expenses 
allowance?
302-5.5  Must my agency authorize payment of a househunting trip 
expenses allowance?
302-5.6  Under what circumstances will I receive a househunting trip 
expenses allowance?
302-5.7  Who may travel on a househunting trip at Government 
expense?
302-5.8  How many househunting trips may my agency authorize in 
connection with a particular transfer?
302-5.9  May my spouse and I perform separate househunting trips at 
Government expense?
302-5.10  How soon may I and/or my spouse begin a househunting trip?
302-5.11  Is there a time limit on the duration of a househunting 
trip?
302-5.12  When must my househunting trip be completed?
302-5.13  What methods may my agency use to reimburse me for 
househunting trip expenses?
302-5.14  What transportation expenses will my agency pay?
302-5.15  Must I document my househunting trip expenses to receive 
reimbursement?
302-5.16  May I receive an advance of funds for househunting trip 
expenses?
302-5.17  Am I in a duty status when I perform a househunting trip?
302-5.18  May I retain any balance left over from my househunting 
reimbursement if my fixed amount is more than adequate to cover my 
househunting trip?

Subpart B--Agency Responsibilities

302-5.100  How should we administer the househunting trip expenses 
allowance?
302-5.101  What governing policies must we establish for the 
househunting trip expenses allowance?
302-5.102  Under what circumstances may we authorize a househunting 
trip?
302-5.103  What factors must we consider in determining whether to 
offer an employee the fixed amount househunting trip subsistence 
expense reimbursement option?


[[Page 58214]]


    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1973 Comp., p. 586.

Subpart A--Employee's Allowance For Househunting Trip Expenses

    Note to subpart A: Use of the pronouns ``I'' and ``you'' 
throughout this subpart refers to the employee.

Sec. 302-5.1  What is a ``househunting trip''?

    The term ``househunting trip'' refers to a trip made by the 
employee and/or spouse to your new official station locality to find 
permanent living quarters to rent or purchase. The term ``living 
quarters'' in this part includes apartments, condominiums, and 
cooperatives in addition to townhouses and single family homes.


Sec. 302-5.2  What is the purpose of the househunting trip expenses 
allowance?

    The allowance for househunting trip expenses is intended to 
facilitate and expedite the employee's move from your old official 
station to your new official station and to lower the Government's 
overall cost for the employee's relocation by reducing the amount of 
time an employee must occupy temporary quarters. The allowance for 
househunting trip expenses provides the employee and/or spouse a period 
of time to concentrate on finding a suitable permanent residence at the 
new official station and thereby expedites the employee's relocation.


Sec. 302-5.3  Am I eligible for a househunting trip expenses allowance?

    You are eligible for a househunting trip expenses allowance if you 
are an employee who is authorized to transfer, and in addition:
    (a) Both your old and new official stations are located within the 
United States;
    (b) You are not assigned to Government or other prearranged housing 
at your new official station; and
    (c) Your old and new official stations are 75 or more miles apart 
(as measured by map distance) via a usually traveled surface route.


Sec. 302-5.4  Who is not eligible for a househunting trip expenses 
allowance?

    New appointees and employees assigned under the Government 
Employees Training Act (5 U.S.C. 4109) are not eligible for a 
househunting trip expenses allowance.


Sec. 302-5.5  Must my agency authorize payment of a househunting trip 
expenses allowance?

    No, your agency determines when it is in the Government's interest 
to authorize you a househunting trip and the procedures you must follow 
if it is authorized.


Sec. 302-5.6  Under what circumstances will I receive a househunting 
trip expenses allowance?

    You will receive a househunting trip expenses allowance if:
    (a) Your agency authorized you to perform a househunting trip in 
advance of the travel (the agency authorization must specify the mode 
of transportation and the period of time allowed for the trip);
    (b) You have signed a service agreement;
    (c) Your agency has established, and informed you of, the date you 
are to report to your new official station; and
    (d) You meet any additional conditions your agency has established.


Sec. 302-5.7  Who may travel on a househunting trip at Government 
expense?

    Only you and/or your spouse may travel on a househunting trip at 
Government expense.


Sec. 302-5.8  How many househunting trips may my agency authorize in 
connection with a particular transfer?

    Your agency may authorize only one round trip for you and/or your 
spouse in connection with a particular transfer.


Sec. 302-5.9  May my spouse and I perform separate househunting trips 
at Government expense?

    Yes, however, your reimbursement will be limited to the cost that 
would have been incurred if you and your spouse had traveled together 
on one round trip.


Sec. 302-5.10  How soon may I and/or my spouse begin a househunting 
trip?

    You may begin your househunting trip as soon as your agency has 
notified you of your transfer and issued a travel authorization for a 
househunting trip. To take maximum advantage of your trip, however, it 
is very important that you become familiar as quickly as you can with 
your new official station area (e.g., housing market conditions, school 
locations, etc.). If you are selling your residence at your old 
official station, you should not begin your househunting trip until you 
have a current appraisal of the value of the residence so that you can 
more accurately determine the appropriate price range of residences to 
consider during your househunting trip.


Sec. 302-5.11  Is there a time limit on the duration of a househunting 
trip?

    A househunting trip should be for a reasonable period, not to 
exceed 10 calendar days, as authorized by your agency under Sec. 302-
5.101(d).


Sec. 302-5.12  When must my househunting trip be completed?

    You and/or your spouse must complete your househunting trip as 
indicated in the following table:

------------------------------------------------------------------------
                                          Your househunting trip must be
                  For                              completed by
------------------------------------------------------------------------
You....................................  The day before you report to
                                          your new Official station.
Your spouse............................  The earlier of:
                                         (a) The day before your family
                                          relocates to your new official
                                          station; or
                                         (b) The day before the maximum
                                          time for beginning allowable
                                          travel expires (see Sec.  302-
                                          2.100 of this chapter).
------------------------------------------------------------------------

Sec. 302-5.13  What methods may my agency use to reimburse me for 
househunting trip expenses?

    Your agency will reimburse your househunting trip expenses as 
indicated in the following table:

------------------------------------------------------------------------
                  For                           You are reimbursed
------------------------------------------------------------------------
You and/or your spouse's transportation  Your actual transportation
 expenses.                                costs.
You and/or your spouse's subsistence     One of the following:
 expenses..
                                         (a) A per diem allowance for
                                          you and/or your spouse as
                                          prescribed under part 302-4,
                                          subpart C of this chapter; or
                                         (b) If you accept your agency's
                                          offer of the fixed amount
                                          option, and:

[[Page 58215]]

 
                                         (1) Both you and your spouse
                                          perform a househunting trip
                                          either together or separately,
                                          a single amount determined by
                                          multiplying the applicable
                                          locality rate (listed in
                                          appendix A to chapter 301 of
                                          this subtitle) by 6.25 or
                                         (2) Only one of you performs a
                                          househunting trip, an amount
                                          determined by multiplying the
                                          applicable locality rate
                                          (listed in appendix A to
                                          chapter 301 of this subtitle)
                                          by 5.
------------------------------------------------------------------------

Sec. 302-5.14  What transportation expenses will my agency pay?

    Your agency will authorize you to travel by the transportation 
mode(s) (e.g., airline, train, or privately owned automobile) it 
determines to be advantageous to the Government. Your agency will pay 
for your transportation expenses by the authorized mode(s). If you 
travel by any other mode(s), your agency will pay your transportation 
expenses not to exceed the cost of transportation by the authorized 
mode(s).


Sec. 302-5.15  Must I document my househunting trip expenses to receive 
reimbursement?

    To receive reimbursement for househunting trip transportation 
expenses you must itemize your transportation expenses and provide 
receipts as required by Sec. 301-11.3(c) of this title. For fixed 
amount househunting trip subsistence reimbursement, you do not need to 
document your subsistence expenses. For per diem househunting trip 
subsistence expense reimbursement, you must itemize your lodging 
expenses and you must provide receipts as required by Secs. 301-7.9(b) 
and 301-11.3(c) of this title.


Sec. 302-5.16  May I receive an advance of funds for househunting trip 
expenses?

    Your agency may authorize an advance of funds, in accordance with 
Sec. 302-2.20 of this chapter, for your househunting trip expenses. 
Your agency may not advance you funds in excess of the sum of your 
anticipated transportation costs and either the maximum per diem 
allowable under part 302-4 of this chapter for the location and 
duration of your househunting trip or your fixed amount househunting 
trip subsistence expenses payment, whichever applies.


Sec. 302-5.17  Am I in a duty status when I perform a househunting 
trip?

    Yes, you are in a duty status when you perform a househunting trip.


Sec. 302-5.18  May I retain any balance left over from my househunting 
reimbursement if my fixed amount is more than adequate to cover my 
househunting trip?

    Yes, if your fixed househunting amount is more than adequate to 
cover your househunting expenses any balance belongs to you.

Subpart B--Agency Responsibilities

    Note to subpart B: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-5.100  How should we administer the househunting trip expenses 
allowance?

    You should administer the househunting trip expenses allowance to 
minimize or avoid its use when other satisfactory and more economical 
arrangement are available.


Sec. 302-5.101  What governing policies must we establish for the 
househunting trip expenses allowance?

    You must establish policies and procedures governing:
    (a) When you will authorize a househunting trip for an employee;
    (b) Who will determine if a househunting trip is appropriate in 
each situation;
    (c) If and when you will authorize the fixed amount option for 
househunting trip subsistence expenses reimbursement;
    (d) Who will determine the appropriate duration of a househunting 
trip for an employee who selects a per diem allowance under part 302-4 
of this chapter to reimburse househunting trip subsistence expenses; 
and
    (e) Who will determine the mode(s) of transportation to be used.


Sec. 302-5.102  Under what circumstances may we authorize a 
househunting trip?

    You may authorize a househunting trip on an individual-case basis 
when the employee has accepted the transfer and his/her circumstances 
indicate that a househunting trip actually is needed. You may not 
authorize a househunting trip when the purpose of the trip is to assist 
the employee in deciding whether he or she will accept the transfer.


Sec. 302-5.103  What factors must we consider in determining whether to 
offer an employee the fixed amount househunting trip subsistence 
expense reimbursement option?

    You must consider the following factors:
    (a) Ease of administration. Payment of a per diem allowance under 
part 302-4 of this chapter requires you to review claims for the 
validity, accuracy, and reasonableness of each expense amount, except 
for meals and incidental expenses. Fixed amount househunting trip 
subsistence expenses reimbursement is easier to administer because you 
do not have to review expense amounts.
    (b) Cost considerations. You must weigh the cost of each 
reimbursement option on a case-by-case basis.
    (c) Treatment of employees. The employee is allowed to choose 
between a per diem allowance under part 302-4 of this chapter and fixed 
amount househunting trip subsistence expenses reimbursement when you 
offer the fixed amount reimbursement method. You therefore should weigh 
employee morale and productivity considerations against actual cost 
considerations in determining which method to offer.

PART 302-6--ALLOWANCE FOR TEMPORARY QUARTERS SUBSISTENCE EXPENSES

Subpart A--General Rules
Sec.
302-6.1   What are ``temporary quarters?''
302-6.2   What are ``temporary quarters subsistence expenses 
(TQSE)''?
302-6.3   What is the purpose of the TQSE allowance?
302-6.4   Am I eligible for a TQSE allowance?
302-6.5   Who is not eligible for a TQSE allowance?
302-6.6   Must my agency authorize payment of a TQSE allowance?
302-6.7   Under what circumstances will I receive a TQSE allowance?
302-6.8   Who may occupy temporary quarters at Government expense?
302-6.9   Where may I/we occupy temporary quarters at Government 
expense?
302-6.10   May my immediate family and I occupy temporary quarters 
at different locations?
302-6.11   What methods may my agency use to reimburse me for TQSE?

[[Page 58216]]

302-6.12   Must I document my TQSE to receive reimbursement?
302-6.13   How soon may I/we begin occupying temporary quarters at 
Government expense?
302-6.14   How is my TQSE allowance affected if my temporary 
quarters become my permanent residence quarters?
302-6.15   May I receive an advance of funds for TQSE?
302-6.16   May I receive a TQSE allowance if I am receiving another 
subsistence expenses allowance?
302-6.17   Am I eligible for a TQSE allowance if I transfer to a 
foreign area?
302-6.18   May I be reimbursed for local transportation expenses 
incurred while I am occupying temporary quarters?
Subpart B--Actual TQSE Method of Reimbursement
302-6.100   What am I paid under the actual TQSE reimbursement 
method?
302-6.101   May my agency reduce my TQSE allowance below the 
``maximum allowable amount''?
302-6.102   What is the ``applicable per diem rate'' under the 
actual TQSE reimbursement method?
302-6.103   What is the latest period for which actual TQSE 
reimbursement may begin?
302-6.104   How long may I be authorized to claim actual TQSE 
reimbursement?
302-6.105   What is a ``compelling reason'' warranting extension of 
my authorized period for claiming an actual TQSE reimbursement?
302-6.106   May I interrupt occupancy of temporary quarters?
302-6.107   What effect do partial days of temporary quarters 
occupancy have on my authorized period for claiming actual TQSE 
reimbursement?
302-6.108   When does my authorized period for claiming actual TQSE 
reimbursement end?
302-6.109   May the period for which I am authorized to claim actual 
TQSE reimbursement for myself be different from that of my immediate 
family?
302-6.110   What effect do partial days have on my actual TQSE 
reimbursement?
302-6.111   May I and/or my immediate family occupy temporary 
quarters longer than the period for which I am authorized to claim 
actual TQSE reimbursement?
Subpart C--Fixed Amount Reimbursement
302-6.200   What am I paid under the fixed amount reimbursement 
method?
302-6.201   How do I determine the amount of my payment under the 
fixed amount reimbursement method?
302-6.202   Will I receive additional TQSE reimbursement if my fixed 
amount is not adequate to cover my TQSE?
302-6.203   May I retain any balance left over from my TQSE 
reimbursement if my fixed amount is more than adequate to cover my 
TQSE?
Subpart D--Agency Responsibilities
302-6.300   How should we administer the TQSE allowance?
302-6.301   What governing policies must we establish for the TQSE 
allowance?
302-6.302   Under what circumstances may we authorize the TQSE 
allowance?
302-6.303   What factors should we consider in determining whether 
the TQSE allowance is actually necessary?
302-6.304   What factors should we consider in determining whether 
to offer an employee the fixed amount TQSE reimbursement option?
302-6.305   What factors should we consider in determining whether 
quarters are temporary?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1973 Comp., p. 586.

Subpart A--General Rules

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-6.1  What are ``temporary quarters?'

    The term ``temporary quarters'' refers to lodging obtained for the 
purpose of temporary occupancy from a private or commercial source.


Sec. 302-6.2  What are ``temporary quarters subsistence expenses 
(TQSE)''?

    ``Temporary quarters subsistence expenses'' or ``TQSE'' are 
subsistence expenses incurred by an employee and/or his/her immediate 
family while occupying temporary quarters. TQSE does not include local 
transportation expenses incurred during occupancy of temporary quarters 
(see Sec. 302-6.18 for details).


Sec. 302-6.3  What is the purpose of the TQSE allowance?

    The TQSE allowance is intended to reimburse an employee reasonably 
and equitably for subsistence expenses incurred when it is necessary to 
occupy temporary quarters.


Sec. 302-6.4  Am I eligible for a TQSE allowance?

    You are eligible for a TQSE allowance if you are an employee who is 
authorized to transfer; and
    (a) Your new official station is located within the United States; 
and
    (b) Your old and new official stations are 50 miles or more apart 
(as measured by map distance) via a usually traveled surface route.


Sec. 302-6.5  Who is not eligible for a TQSE allowance?

    New appointees, employees assigned under the Government Employees 
Training Act (5 U.S.C. 4109), and employees returning from an overseas 
assignment for the purpose of separation are not eligible for a TQSE 
allowance.


Sec. 302-6.6  Must my agency authorize payment of a TQSE allowance?

    No, your agency determines whether it is in the Government's 
interest to pay TQSE.


Sec. 302-6.7  Under what circumstances will I receive a TQSE allowance?

    You will receive a TQSE allowance if:
    (a) Your agency authorizes it before you occupy the temporary 
quarters (the agency authorization must specify the period of time 
allowed for you to occupy temporary quarters);
    (b) You have signed a service agreement; and
    (c) You meet any additional conditions your agency has established.


Sec. 302-6.8  Who may occupy temporary quarters at Government expense?

    Only you and/or your immediate family may occupy temporary quarters 
at Government expense.


Sec. 302-6.9  Where may I/we occupy temporary quarters at Government 
expense?

    You and/or your immediate family may occupy temporary quarters at 
Government expense within reasonable proximity of your old and/or new 
official stations. Neither you nor your immediate family may be 
reimbursed for occupying temporary quarters at any other location, 
unless justified by special circumstances that are reasonably related 
to your transfer.


Sec. 302-6.10  May my immediate family and I occupy temporary quarters 
at different locations?

    Yes. For example, if you must vacate your home at the old official 
station and report to the new official station and your family remains 
behind until the end of the school year, you may need to occupy 
temporary quarters at the new official station while your family 
occupies temporary quarters at the old official station.


Sec. 302-6.11  What methods may my agency use to reimburse me for TQSE?

    Your agency will reimburse you for TQSE under the actual expense 
method unless it permits the ``fixed amount'' reimbursement method as 
an alternative. If your agency makes both methods available to you, you 
may select the one you prefer.


Sec. 302-6.12  Must I document my TQSE to receive reimbursement?

    For fixed amount TQSE reimbursement, you do not document your TQSE. 
For actual TQSE reimbursement, you must document your TQSE by itemizing 
each expense and providing receipts as required by

[[Page 58217]]

Sec. Sec. 301-11.25, 301-11.306 and 301-52.4(b) of this title.


Sec. 302-6.13  How soon may I/we begin occupying temporary quarters at 
Government expense?

    As soon as your agency has authorized you to receive a TQSE 
allowance and you have signed a service agreement.


Sec. 302-6.14  How is my TQSE allowance affected if my temporary 
quarters become my permanent residence quarters?

    If your temporary quarters become your permanent residence 
quarters, you may receive a TQSE allowance only if you show in a manner 
satisfactory to your agency that you initially intended to occupy the 
quarters temporarily.


Sec. 302-6.15  May I receive an advance of funds for TQSE?

    Yes, if authorized in accordance with Sec. 302-2.20 of this 
chapter, your agency may advance the amount of funds necessary to cover 
your estimated TQSE expenses for up to 30 days. Your agency 
subsequently may advance additional funds for periods up to 30 days.


Sec. 302-6.16  May I receive a TQSE allowance if I am receiving another 
subsistence expenses allowance?

    No, with one exception. You may receive a cost-of-living allowance 
payable under 5 U.S.C. 5941 in addition to a TQSE allowance.


Sec. 302-6.17  Am I eligible for a TQSE allowance if I transfer to a 
foreign area?

    No, you may not receive a TQSE allowance under this part when you 
transfer to an area outside the United States. However, you may qualify 
for a comparable allowance under the Standardized Regulations 
(Government Civilians, Foreign Areas) prescribed by the Department of 
State.


Sec. 302-6.18  May I be reimbursed for local transportation expenses 
incurred while I am occupying temporary quarters?

    Generally no; local transportation expenses are not TQSE, and there 
is no authority to pay such expenses under TQSE. You may, however, be 
reimbursed under part 301-4 of this subtitle for necessary 
transportation expenses if you perform local official business travel 
while you are occupying temporary quarters.

Subpart B--Actual TQSE Method of Reimbursement


Sec. 302-6.100  What am I paid under the actual TQSE reimbursement 
method?

    Your agency will pay your actual TQSE incurred, provided the 
expenses are reasonable and do not exceed the maximum allowable amount. 
The ``maximum allowable amount'' is the ``maximum daily amount'' 
multiplied by the number of days you actually incur TQSE not to exceed 
the number of days authorized, taking into account that the rates 
change after 30 days in temporary quarters. The ``maximum daily 
amount'' is determined by adding the rates in the following table for 
you and each member of your immediate family authorized to occupy 
temporary quarters:

----------------------------------------------------------------------------------------------------------------
                                       The ``maximum daily amount'' of TQSE under the actual expense method that
                                      --------------------------------------------------------------------------
                                                                Your accompanied spouse
                                           You and/or your        or a member of your        A member of your
                                        unaccompanied spouse 1  immediate family who is  immediate family who is
                                            may receive is        age 12 or older may        under age 12 may
                                                                       receive is               receive is
----------------------------------------------------------------------------------------------------------------
For:
    The first 30 days of temporary     The applicable per diem  .75 times the            .5 times the applicable
     quarters.                          rate.                    applicable per diem      per diem rate.
                                                                 rate.
    Any additional days of temporary   .75 times the            .5 times the applicable  .4 times the applicable
     quarters.                          applicable per diem      per diem rate.           per diem rate.
                                        rate.
----------------------------------------------------------------------------------------------------------------
\1\ (That is, when the spouse necessarily occupies temporary quarters in lieu of the employee or in a location
  separate from the employee.)

Sec. 302-6.101  May my agency reduce my TQSE allowance below the 
``maximum allowable amount''?

    Yes, if the estimated daily amount of your TQSE is determined in 
advance to be lower than the maximum daily amount, your agency may 
reduce the maximum allowable amount to your expected expenses.


Sec. 302-6.102  What is the ``applicable per diem rate'' under the 
actual TQSE reimbursement method?

    The ``applicable per diem rate'' under the actual TQSE 
reimbursement method is as follows:

------------------------------------------------------------------------
                                            The applicable per diem rate
     For temporary quarters located in                   is
------------------------------------------------------------------------
The continental United States (CONUS).....  The standard CONUS rate.
Outside the Continental United States       The locality rate
 (OCONUS).                                   established by the
                                             Secretary of Defense or the
                                             Secretary of State under
                                             Sec.  301-11.6 of this
                                             title.
------------------------------------------------------------------------

Sec. 302-6.103  What is the latest period for which actual TQSE 
reimbursement may begin?

    The period must begin before the maximum time for beginning 
allowable travel and transportation under Sec. 302-2.8.


Sec. 302-6.104  How long may I be authorized to claim actual TQSE 
reimbursement?

    Your agency may authorize you to claim actual TQSE in increments of 
30-days or less, not to exceed 60 consecutive days. However, if your 
agency determines that there is a compelling reason for you to continue 
occupying temporary quarters after 60 consecutive days, it may 
authorize an extension of up to 60 additional consecutive days. Under 
no circumstances may you be authorized reimbursement for actual TQSE 
for more than a total of 120 consecutive days.


Sec. 302-6.105  What is a ``compelling reason'' warranting extension of 
my authorized period for claiming an actual TQSE reimbursement?

    A ``compelling reason'' is an event that is beyond your control and 
is acceptable to your agency. Examples include, but are not limited to 
when:
    (a) Delivery of your household goods to your new residence is 
delayed due to strikes, customs clearance, hazardous weather, fires, 
floods or other acts of God, or similar events.
    (b) You cannot occupy your new permanent residence because of 
unanticipated problems (e.g., delay in settlement on the new residence, 
or short-term delay in construction of the residence).

[[Page 58218]]

    (c) You are unable to locate a permanent residence which is 
adequate for your family's needs because of housing conditions at your 
new official station.
    (d) Sudden illness, injury, your death or the death of your 
immediate family member; or
    (e) Similar reasons.


Sec. 302-6.106  May I interrupt occupancy of temporary quarters?

    Yes, your authorized period for claiming actual TQSE reimbursement 
is measured on consecutive days, and once begun, normally continues to 
run whether or not you occupy temporary quarters. You may, however, 
interrupt your authorized period for claiming actual TQSE reimbursement 
in the following instances:
    (a) For the time allowed for en route travel between the old and 
new official stations;
    (b) For circumstances attributable to official necessity such as an 
intervening temporary duty assignment or military duty; or
    (c) For a non-official necessary interruption such as 
hospitalization, approved sick leave, or other reason beyond your 
control and acceptable to your agency.


Sec. 302-6.107  What effect do partial days of temporary quarters 
occupancy have on my authorized period for claiming actual TQSE 
reimbursement?

    Occupancy of temporary quarters for less than a whole day 
constitutes one full day of your authorized period. (However, see 
Sec. 302-6.110 regarding en route travel.)


Sec. 302-6.108  When does my authorized period for claiming actual TQSE 
reimbursement end?

    The period ends at midnight on the earlier of:
    (a) The day preceding the day you and/or any member of your 
immediate family occupies permanent residence quarters.
    (b) The day your authorized period for claiming actual TQSE 
reimbursement expires.


Sec. 302-6.109  May the period for which I am authorized to claim 
actual TQSE reimbursement for myself be different from that of my 
immediate family?

    No, the eligibility period for which you are authorized to claim 
actual TQSE reimbursement for yourself and for each member of your 
immediate family must run concurrently.


Sec. 302-6.110  What effect do partial days have on my actual TQSE 
reimbursement?

    You may not receive reimbursement under both the actual TQSE 
allowance and another subsistence expenses allowance within the same 
day, with one exception. If you claim TQSE reimbursement on the same 
day that en route travel per diem ends, your en route travel per diem 
will be computed under applicable partial day rules and you also may be 
reimbursed for actual TQSE you incur after 6 p.m. of that day.


Sec. 302-6.111  May I and/or my immediate family occupy temporary 
quarters longer than the period for which I am authorized to claim 
actual TQSE reimbursement?

    Yes, but you will not be reimbursed for any of the expenses you 
incur during the unauthorized period.

Subpart C-Fixed Amount Reimbursement


Sec. 302-6.200  What am I paid under the fixed amount reimbursement 
method?

    If your agency offers and you select the fixed amount TQSE 
reimbursement method, you are paid a fixed amount for up to 30 days. No 
extensions are allowed under the fixed amount method.


Sec. 302-6.201  How do I determine the amount of my payment under the 
fixed amount reimbursement method?

    Multiply the number of days your agency authorizes TQSE by .75 
times the maximum per diem rate (i.e., lodging plus meals and 
incidental expenses) prescribed in chapter 301 of this subtitle for the 
locality of the new official station. Then for each member of your 
immediate family, multiply the same number of days by .25 times the 
same per diem rate. Your payment will be the sum of this calculation.


Sec. 302-6.202  Will I receive additional TQSE reimbursement if my 
fixed amount is not adequate to cover my TQSE?

    No, you will not receive additional TQSE reimbursement if the fixed 
amount is not adequate to cover your TQSE.


Sec. 302-6.203  May I retain any balance left over from my TQSE 
reimbursement if my fixed amount is more than adequate?

    Yes, if your fixed TQSE amount is more than adequate to cover your 
TQSE expenses any balance belongs to you.

Subpart D--Agency Responsibilities

    Note to subpart D: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-6.300  How should we administer the TQSE allowance?

    Temporary quarters should be used only if, and only for as long as, 
necessary until the employee and/or his/her immediate family can move 
into permanent residence quarters. You must administer the TQSE 
allowance to minimize or avoid other relocation expenses.


Sec. 302-6.301  What governing policies must we establish for the TQSE 
allowance?

    You must establish policies and procedures governing:
    (a) When you will authorize temporary quarters for employees;
    (b) Who will determine if temporary quarters is appropriate in each 
situation;
    (c) If and when you will authorize the fixed amount option for TQSE 
reimbursement;
    (d) Who will determine the appropriate period of time for which 
TQSE reimbursement will be authorized, including approval of extensions 
and interruptions of temporary quarters occupancy; and
    (e) Who will determine whether quarters were indeed temporary, if 
there is any doubt.


Sec. 302-6.302  Under what circumstances may we authorize the TQSE 
allowance?

    You may authorize a TQSE allowance on an individual-case basis when 
use of temporary quarters is justified in connection with an employee's 
transfer to a new official station. You may not authorize a TQSE 
allowance for vacation purposes or other reasons unrelated to the 
transfer.


Sec. 302-6.303  What factors should we consider in determining whether 
the TQSE allowance is actually necessary?

    The factors you should consider include:
    (a) The length of time the employee should reasonably be expected 
to occupy his/her residence at the old official station prior to 
reporting for duty at the new official station. An employee and his/her 
immediate family should continue to occupy the residence at the old 
official station for as long as practicable to avoid the necessity for 
temporary quarters.
    (b) The existence of less expensive alternatives. If a less 
expensive alternative to the TQSE allowance exists that will enable the 
employee to find permanent quarters at the new official station, you 
should consider such an alternative. For example, authorize a 
househunting trip instead of temporary quarters if it would cost less 
overall.
    (c) The existence of other opportunities to arrange for permanent 
quarters. Consider whether the employee had other adequate opportunity 
to arrange for permanent quarters. For example, you should not 
authorize temporary quarters if the employee had adequate opportunity

[[Page 58219]]

during an extended temporary duty assignment to arrange for permanent 
quarters.


Sec. 302-6.304  What factors should we consider in determining whether 
to offer an employee the fixed amount TQSE reimbursement option?

    The factors you should consider include:
    (a) Ease of administration. Actual TQSE reimbursement requires an 
agency to review claims for the validity, accuracy, and reasonableness 
of each expense amount. Fixed amount TQSE reimbursement does not 
require review of expense amounts and is therefore easier to 
administer.
    (b) Cost considerations. You must weigh the cost of each 
alternative. Actual TQSE reimbursement may extend up to 120 consecutive 
days, while fixed amount TQSE reimbursement is limited to 30 days. 
Actual TQSE reimbursement may be less expensive, since its ceiling is 
based on the standard CONUS rate, while fixed amount TQSE reimbursement 
is based on the locality per diem rate. However, fixed amount TQSE 
reimbursement may be less expensive because the maximum daily rate 
under actual TQSE reimbursement is a higher percentage of the 
applicable per diem rate than fixed amount TQSE reimbursement.
    (c) Treatment of employee. The employee is allowed to choose 
between actual TQSE reimbursement and fixed amount TQSE reimbursement 
when you offer the fixed amount TQSE reimbursement method. You 
therefore should weigh employee morale and productivity considerations 
against actual cost considerations in determining which method to 
offer.


Sec. 302-6.305  What factors should we consider in determining whether 
quarters are temporary?

    In determining whether quarters are ``temporary'', you should 
consider factors such as the duration of the lease, movement of 
household effects into the quarters, the type of quarters, the 
employee's expressions of intent, attempts to secure a permanent 
dwelling, and the length of time the employee occupies the quarters.

SUBCHAPTER D--TRANSPORTATION AND STORAGE OF PROPERTY

PART 302-7--TRANSPORTATION AND TEMPORARY STORAGE OF HOUSEHOLD GOODS 
AND PROFESSIONAL BOOKS, PAPERS, AND EQUIPMENT (PBP&E)

Subpart A--General Rules
Sec.
302-7.1  Who is eligible for the transportation and temporary 
storage of household goods (HHG) at Government expense?
302-7.2  What is the maximum weight of HHG that may be transported 
or stored at Government expense?
302-7.3  May HHG be transported or stored in more than one lot?
302-7.4  Does the weight of any professional books, papers and 
equipment (PBP&E) count against the 18,000 pound HHG weight 
limitation?
302-7.5  May the 18,000 pound HHG weight limitation be increased if 
PBP&E are transported as an administrative expense to the agency?
302-7.6  What are the authorized origin and destination points for 
the transportation of HHG and PBP&E?
302-7.7  May the origin and destination points be other than that 
prescribed in Sec. 302-7.6?
302-7.8  Is there a time limit for the temporary storage of an 
authorized HHG shipment?
302-7.9  What are some reasons that would justify the additional 
storage beyond the initial 90-day limit?
302-7.10  Is property acquired en route eligible for transportation 
at Government expense?
302-7.11  What is the Government's liability for loss or damage to 
HHG?
302-7.12  What are the various methods of shipping HHG and how is 
the weight determined for each type of shipment?
302-7.13  What methods of transporting and paying for the movement 
of HHG, PBP&E and temporary storage are authorized?
302-7.14  Are there any disadvantages to using the commuted rate 
method for transporting HHG, PBP&E and temporary storage?
302-7.15  Must I use the method selected by my agency for 
transporting my HHG, PBP&E and temporary storage?
302-7.16  Is the maximum weight allowance for HHG and temporary 
storage limited when quarters are furnished or partly furnished by 
the Government OCONUS or upon return to CONUS?
302-7.17  May PBP&E be transported at Government expense upon 
returning to CONUS for separation from Government service, after 
completion of an OCONUS assignment?
302-7.18  Who is liable for any loss or damage to HHG incident to a 
authorized relocation?
302-7.19  Should I include items that are irreplaceable or of 
extremely high monetary or sentimental value in my HHG shipment?
Subpart B--Commuted Rate
302-7.100  How are the charges of transporting HHG, and temporary 
storage calculated?
302-7.101  Where can the commuted rate schedules for the 
transportation of HHG, and temporary storage found?
302-7.102  How is the mileage distance determined under the commuted 
rate method?
302-7.103  How are the charges calculated when a carrier charges a 
minimum weight, but the actual weight of HHG, PBP&E and temporary 
storage is less than the minimum weight charged?
302-7.104  What documentation must be provided for reimbursement?
302-7.105  May an advance of funds be authorized for transporting 
HHG and temporary storage?
302-7.106  What documentation is required to receive an advance 
under the commuted rate method?
302-7.107  May my HHG be temporarily stored at Government expense?
302-7.108  What temporary storage expenses will be reimbursed?
302-7.109  Are receipts required?
302-7.110  Is there a reimbursement limit?
Subpart C--Actual Expense Method
302-7.200  How are charges paid and who makes the arrangements for 
transporting HHG, PBP&E and temporary storage under the actual 
expense method?
302-7.201  Is temporary storage in excess of authorized limits and 
excess valuation of goods and services payable at Government 
expense?
Subpart D--Agency Responsibilities
302-7.300  What policies and procedures must we establish for this 
part?
302-7.301  What method of transporting HHG should we authorize?
302-7.302  What method of transporting should we authorize for 
PBP&E?
302-7.303  What guidelines must we follow when authorizing 
transportation of PBP&E as an administrative expense?
302-7.304  When HHG are shipped under the actual expense method, and 
PBP&E as an administrative expense, in the same lot, are separate 
weight certificates required?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.

Subpart A--General Rules

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-7.1  Who is eligible for the transportation and temporary 
storage of household goods (HHG) at Government expense?

    The following are eligible for the transportation and temporary 
storage of household goods (HHG) at Government expense when a 
relocation has been

[[Page 58220]]

determined to be in the interest of the Government:
    (a) An employee transferred between official duty stations, within 
or outside the continental United States (CONUS);
    (b) A new appointee to his/her first official duty station within 
or outside the CONUS;
    (c) An employee being returned to CONUS for separation from an 
outside CONUS assignment, after completion of an agreed upon period of 
services;
    (d) An SES employee authorized last move home benefits under 
Sec. 302-3.304 of this chapter;
    (e) An employee authorized a temporary change of station (TCS).


Sec. 302-7.2  What is the maximum weight of HHG that may be transported 
or stored at Government expense?

    The maximum weight allowance of HHG that may be shipped or stored 
at Government expense is 18,000 pounds net weight.


Sec. 302-7.3  May HHG be transported or stored in more than one lot?

    Household goods may be transported and stored in multiple lots, 
however, your maximum HHG weight allowance is based upon shipping and 
storing all HHG as one lot.


Sec. 302-7.4  Does the weight of any professional books, papers and 
equipment (PBP&E) count against the 18,000 pound HHG weight limitation?

    Yes, the weight on any PBP&E is generally part of and not in 
addition to the 18,000 pound HHG weight limitation. However, if the 
weight of any PBP&E causes the lot to exceed 18,000 pounds, the PBP&E 
may be transported to the new duty station as an administrative expense 
of the agency. Authorization for such shipment is granted solely at the 
discretion of the agency and subject to its policies governing such 
shipment.


Sec. 302-7.5  May the 18,000 pound HHG weight limitation be increased 
if PBP&E are transported as an administrative expense to the agency?

    No, the 18,000 pound HHG weight limitation is mandated by statute 
and cannot be exceeded. Shipments of PBP&E as an administrative expense 
to the agency are not subject to the HHG maximum weight allowance.


Sec. 302-7.6  What are the authorized origin and destination points for 
the transportation of HHG and PBP&E.

    The authorized origin and destination points for the transportation 
of HHG and PBP&E varies by category of employee and are as follows:

                      Transportation of HHG and PBP&E
------------------------------------------------------------------------
                                                 Authorized origin/
           Category of employee                      destination
------------------------------------------------------------------------
(a) Employee transferred between official   Between the old and new
 stations.                                   official station.
(b) New appointee.........................  From place of actual
                                             residence to New official
                                             station.
(c) Employee returning from outside CONUS   Last official station to
 assignment for separation from Government   place of actual residence.
 service.
(d) SES last move home benefits...........  From last official station
                                             to place of Selection.
Temporary change of official station (TCS)  From current official
                                             station to TCS location and
                                             return.
------------------------------------------------------------------------

Sec. 302-7.7  May the origin and destination points be other than that 
prescribed in Sec. 302-7.6?

    Yes, shipments may originate or terminate at any location; however, 
your reimbursement is limited to the cost of transporting the property 
in one lot from the authorized origin to the authorized destination.


Sec. 302-7.8  Is there a time limit for the temporary storage of an 
authorized HHG shipment?

    The initial period of temporary storage at Government expense shall 
not exceed 90 days in connection with any authorized HHG shipment. The 
HHG may be placed in temporary storage at origin, in transit, at 
destination, or any combination thereof. However, upon your written 
request, an additional 90 days may be authorized by the designated 
agency official. In no case may the maximum time limit for temporary 
storage exceed 180 days.


Sec. 302-7.9  What are some reasons that would justify the additional 
storage beyond the initial 90-day limit?

    Reasons for justifying temporary storage beyond the initial 90-day 
limit include, but are not limited to:
    (a) An intervening temporary duty or long-term training assignment;
    (b) Non-availability of suitable housing;
    (c) Completion of residence under construction;
    (d) Serious illness of employee or illness or death of a dependent;
    (e) Strikes, acts of God, or other circumstances beyond the control 
of the employee; or
    (f) Similar reasons.


Sec. 302-7.10  Is property acquired en route eligible for 
transportation at Government expense?

    No, property acquired en route will not be eligible for 
transportation at Government expense.


Sec. 302-7.11  What is the Government's liability for loss or damage to 
HHG?

    The Government's liability for loss or damage to HHG is determined 
by your agency under title 31 U.S.C. 3721-3723 and agency implementing 
rules and regulations issued pursuant to the law.


Sec. 302-7.12  What are the various methods of shipping HHG and how is 
the weight determined for each type of shipment?

    HHG should be shipped by the most economical method available. The 
various methods of shipment and weight calculations include the 
following:

------------------------------------------------------------------------
        Method of shipment          How weight of shipment is determined
------------------------------------------------------------------------
(a) Uncrated (shipped in HHG        The net weight will be shown on the
 movers van or similar conveyance).  bill of lading or weight
                                     certificate attached and includes
                                     the weight of barrels, boxes,
                                     cartons, and similar material used
                                     in packing, but does not include
                                     pads, chains, dollies and other
                                     equipment to load and secure the
                                     shipment.
(b) Crated shipments..............  When crated the net weight will not
                                     include the weight of the crating
                                     material. The net weight will be
                                     computed as being 60 percent of the
                                     gross weight. However, if the net
                                     weight computed in this manner
                                     exceeds the applicable weight
                                     limitation and if it is determined
                                     that, for reasons beyond the
                                     employee's control, unusually heavy
                                     crating and packing materials were
                                     necessarily used, the net weight
                                     may be computed at less than 60
                                     percent of the gross weight.

[[Page 58221]]

 
(c) Containerized shipments         When the known tare weight does not
 (Special containers designed,       include the weight of interior
 e.g., lift vans, CONEX              bracing and padding materials but
 transporters, HHG shipping boxes,   only the weight of the container,
 for repeated use).                  the net weight will be 85 percent
                                     of the gross weight less the weight
                                     of the container. If the known tare
                                     weight includes such material, so
                                     that the net weight is the same as
                                     it would be for uncrated shipments
                                     in interstate commerce, the net
                                     weight will not be subject to
                                     reduction.
(d) Constructive weight...........  If adequate scales are not available
                                     at origin, en route or at
                                     destination, a constructive weight
                                     based on 7 pounds per cubic foot of
                                     properly loaded van space may be
                                     used. Such weight may be used for a
                                     part-load when its weight could not
                                     be obtained, without first
                                     unloading it or other part-loads
                                     being carried in the same vehicle
                                     or when the HHG are not weighed
                                     because the carrier's charges for
                                     local or metropolitan area moves
                                     are properly computed on the basis
                                     other than weight or volume of the
                                     shipment (as when payment is based
                                     on an hourly rate and distance
                                     involved). In such instances a
                                     statement from the carrier showing
                                     the properly loaded van space
                                     required for the shipment should be
                                     obtained with respect to proof of
                                     entitlement to a commuted rate
                                     payment when net weight cannot be
                                     shown.
------------------------------------------------------------------------

Sec. 302-7.13  What methods of transporting and paying for the movement 
of HHG, PBP&E and temporary storage are authorized?

    There are two authorized methods of transporting and paying for the 
movement of HHG, PBP&E and temporary storage. Your agency will 
determine which of the following methods will be authorized.
    (a) Commuted Rate System. Under the commuted rate system you assume 
total responsibility for arranging and paying for, at least the 
following services: packing/unpacking, crating/uncrating, pickup/
deliver, weighing, line-haul, drayage, and temporary storage of your 
HHG and PBP&E with a commercial HHG carrier or by renting self drive 
equipment for a do-it-yourself move. When any PBP&E is transported as 
an administrative expense of your agency, all arrangements (e.g., 
packing/unpacking, pickup/delivery, weighing, temporary storage, etc.) 
will be handled and paid for by your agency.
    (b) Actual Expense Method. Under the actual expense method, your 
agency assumes the responsibility for arranging and paying for all 
aspects (e.g., packing/unpacking, pickup/delivery, weighing, line-haul, 
drayage, temporary storage, etc.), of transporting your HHG and PBP&E 
with a commercial HHG carrier.


Sec. 302-7.14  Are there any disadvantages to using the commuted rate 
method for transporting HHG, PBP&E and temporary storage?

    Yes. The disadvantages to using the commuted rate method for 
transporting HHG, PBP&E and temporary storage are that the:
    (a) Government cannot take advantage of any special rates that may 
be offered only to Government shipments;
    (b) Commuted rate method does not apply to intrastate moves; and
    (c) Commuted rate method may not fully reimburse your out-of-pocket 
expenses.


Sec. 302-7.15  Must I use the method selected by my agency for 
transporting my HHG, PBP&E and temporary storage?

    No, you do not have to use the method selected (Sec. 302-7.301) by 
your agency, and you may pursue other methods, however, your 
reimbursement is limited to the actual cost incurred, not to exceed 
what the Government would have incurred under the commuted rate system 
within CONUS and the actual expense method OCONUS.


Sec. 302-7.16  Is the maximum weight allowance for HHG and temporary 
storage limited when quarters are furnished or partly furnished by the 
Government OCONUS or upon return to CONUS?

    When quarters are furnished or partly furnished by the Government 
OCONUS, your agency may limit the weight of HHG and temporary storage 
that can be transported to that location. Only the authorized weight 
allowance that was shipped to the OCONUS location may be returned to 
CONUS upon completion of the tour of duty, unless the agency makes an 
exception under conditions specified in agency internal regulations.


Sec. 302-7.17  May PBP&E be transported at Government expense upon 
returning to CONUS for separation from Government service, after 
completion of an OCONUS assignment?

    Any PBP&E that was transported as an administrative expense of the 
Government to the OCONUS assignment will be returned as an 
administrative expense of the Government to the place of actual 
residence or any other location, not to exceed the cost to the 
authorized destination.


Sec. 302.7.18  Who is liable for any loss or damage to HHG incident to 
an authorized relocation?

    When transporting HHG under the commuted rate or actual expense 
method and a commercial HHG carrier is used, the carrier accepts 
limited liability for any loss or damage in accordance with HHG carrier 
tariffs. For transporting HHG by self drive equipment for a do-it-
yourself-move and for any loss or damage not covered by the HHG 
carrier, see part 302-11 of this chapter.


Sec. 302-7.19  Should I include items that are irreplaceable or of 
extremely high monetary or sentimental value in my HHG shipment?

    Generally no; items that are irreplaceable or of extremely high 
monetary or sentimental value should not be included in your HHG 
shipment. Additional insurance may be purchased, at your expense, to 
cover any loss or damage, however, such items are not necessarily 
provided special security. Accordingly, it is advisable that you or an 
immediate family member(s) transport such items personally.

Subpart B--Commuted Rate


Sec. 302-7.100  How are the charges of transporting HHG, and temporary 
storage calculated?

    The charges for transporting HHG, and temporary storage are 
computed by multiplying the number of pounds shipped divided by 100 
(within the 18,000 maximum limitation) by the applicable rate per one-
hundred pounds for the distance transported. This includes, but is not 
limited to packing/unpacking, crating/uncrating, drayage, weighing, 
pickup/delivery, line-haul, accessorial charges, and temporary storage 
charges, including but not limited to handling in/out, etc. However, 
your reimbursement may not fully cover your total out-of-pocket 
expenses. In determining the distance shipped you may use the Household 
Goods Carriers Mileage Guide (issued by the Household Goods Carriers' 
Bureau, 1611 Duke Street, Alexandria, VA 22314-3482), tariffs filed 
with GSA travel management centers, or any other mileage guide 
authorized by your agency. If the exact mileage is not shown, the next 
higher mileage distance

[[Page 58222]]

applies. If there is a minimum weight charge above the actual weight 
under applicable tariffs, reimbursement will be based on the minimum 
weight charge instead of the actual weight.


Sec. 302-7.101  Where can the commuted rate schedules for the 
transportation of HHG, and temporary storage be found?

    The charges for the line-haul transportation, packing, crating, 
unpacking, drayage incident to transportation, and other accessorial 
charges for HHG, and temporary storage can be found in the Household 
Goods Carrier Bureau tariff (issued by the Household Goods Carriers' 
Bureau, 1611 Duke Street, Alexandria, VA 22314-3482) or by contacting 
the GSA travel management center or the appropriate office designated 
in your agency.


Sec. 302-7.102  How is the mileage distance determined under the 
commuted rate method?

    To determine the distance from the authorized origin to the 
authorized destination, the Household Goods Carriers Standard Mileage 
Guide, or a standard road atlas issued by The Household Goods Carrier's 
Bureau, or any other mileage guide authorized by your agency.

    Note to Secs. 302-7.100 and 302-7.102. Any substantial deviation 
from the distances shown in the authorized mileage guides must be 
explained on the travel claim.

Sec. 302-7.103  How are the charges calculated when a carrier charges a 
minimum weight, but the actual weight of HHG, PBP&E and temporary 
storage is less than the minimum weight charged?

    Charges for HHG, PBP&E and temporary storage are calculated based 
on the minimum weight charged by the carrier, but not to exceed 18,000 
pounds.


Sec. 302-7.104  What documentation must be provided for reimbursement?

    When claiming reimbursement under the commuted rate, you must 
provide:
    (a) A receipted copy of the bill of lading (reproduced copies are 
acceptable) including any attached weight certificate copies if issued; 
or
    (b) Other evidence showing points of origin and destination and the 
weight of your HHG, if no bill of lading was issued, or
    (c) If a commercial HHG carrier is not used, you are responsible 
for establishing the weight of the HHG, and temporary storage by 
obtaining proper certified weight certificates. Certified weight 
certificates include the gross and tare weights. This is required 
because payment at commuted rates on the basis of constructive weight 
usually is not possible.


Sec. 302-7.105  May an advance of funds be authorized for transporting 
HHG and temporary storage?

    An advance of funds may be authorized when the transportation of 
HHG and temporary storage is authorized under the commuted rate method.


Sec. 302-7.106  What documentation is required to receive an advance 
under the commuted rate method?

    To receive an advance under the commuted rate method, you must 
provide a copy of an estimate of costs from a commercial HHG carrier or 
a written statement that includes:
    (a) Origin and destination;
    (b) A signed copy of a commercial bill of lading annotated with 
actual weight (or other evidence of actual weight) or a reasonable 
estimate acceptable to your agency; and
    (c) Anticipated temporary storage period (not to exceed 90 days) at 
Government expense.


Sec. 302-7.107  May my HHG be temporarily stored at Government expense?

    Yes, HHG may be stored at Government expense incident to the 
transporting of such goods either at the HHG carrier storage facility 
or a self storage facility. Storage may be at any combination of 
origin, en route locations or destination.


Sec. 302-7.108  What temporary storage expenses will be reimbursed?

    The following will be reimbursed:
    (a) Reimbursable temporary storage cost incident to storage at the 
HHG carriers facility are:
    (1) Handling in;
    (2) Daily storage;
    (3) Handling out; and
    (4) Drayage to residence.
    (b) Reimbursable cost of storage at a self storage facility. This 
is the cost of the storage space that will reasonably accommodate the 
HHG transported.


Sec. 302-7.109  Are receipts required?

    Yes, under the commuted rate system, a receipted copy of the 
warehouse or other bill for storage is required to support 
reimbursement.


Sec. 302-7.110  Is there a reimbursement limit?

    Yes, reimbursement must not exceed the rates published in the 
Nationwide Household Goods Commercial Relocation Tariff (issued by the 
Household Goods Carriers' Bureau, 1611 Duke Street, Alexandria, VA 
22314-3482), supplements thereto and reissues thereof.

Subpart C-Actual Expense Method


Sec. 302-7.200  How are charges paid and who makes the arrangements for 
transporting HHG, PBP&E and temporary storage under the actual expense 
method?

    Your agency is responsible for making all the necessary 
arrangements for transporting HHG, PBP&E, and temporary storage, 
including but not limited to packing/unpacking, crating/uncrating, 
pickup/delivery, weighing, line-haul, etc., under the actual expense 
method. Your agency will issue a Bill of Lading or any other shipping 
document with all charges billed directly to the agency. Any cost or 
weight in excess of 18,000 pounds will be at your expense.


Sec. 302-7.201  Is temporary storage in excess of authorized limits and 
excess valuation of goods and services payable at Government expense?

    No, charges for excess weight, valuation above the minimum amount, 
and services obtained at higher costs must be borne by the employee in 
the same manner as he/she is responsible for excess transportation 
costs.

Subpart D-Agency Responsibilities

    Note to subpart D: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-7.300  What policies and procedures must we establish for this 
part?

    You must establish policies and procedures as required for this 
part, including who will:
    (a) Administer your household goods program;
    (b) Authorize PBP&E to be transported as an agency administrative 
expense;
    (c) Authorize temporary storage in excess of the initial 90-day 
limit;
    (d) Collect any excess cost or charges;
    (e) Advise the employee on the Governments liability for any loss 
and damage claims under 31 U.S.C. 3721-3723; and
    (f) Ensure that international HHG shipments by water are made on 
ships registered under the laws of the United States whenever such 
ships are available.


Sec. 302-7.301  What method of transporting HHG should we authorize?

    You should authorize one of the following methods, of transporting 
an employee's HHG, PBP&E and temporary storage. The selected method 
should be stated on the relocation travel authorization.
    (a) Commuted Rate System. For relocation or first duty station 
assignment within CONUS. This method will be used without regard to

[[Page 58223]]

the actual expense method, unless that method is more economical to the 
Government and results in a savings of $100 or more. Under this system 
the employee assumes total responsibility for arranging and paying for, 
at least the following services: Packing/unpacking, crating/uncrating, 
pickup/deliver, weighing, line-haul, drayage, and temporary storage of 
your HHG and PBP&E with a commercial HHG carrier or by renting self 
drive equipment for a do-it-yourself move. When any PBP&E is 
transported as an administrative expense of the agency, all 
arrangements (e.g., packing/unpacking, pickup/delivery, weighing, 
temporary storage, etc.) will be handled and paid for by you the 
agency.
    (b) Actual Expense Method. For all shipments OCONUS and where 
deemed economical to the Government within CONUS. Under the actual 
expense method, the Government assumes the responsibility for arranging 
and paying for all aspects (e.g., packing/unpacking, pickup/delivery, 
weighing, line-haul, drayage, temporary storage, etc.,) of transporting 
the employee's HHG, PBP&E.


Sec. 302-7.302  What method of transporting should we authorize for 
PBP&E?

    You should authorize the actual expense method for transporting an 
employee's PBP&E only when the weight of the PBP&E causes the 
employee's shipment to exceed the maximum 18,000 pound HHG weight 
limitation. PBP&E should be weighed prior to shipment, if necessary, so 
the weight can easily be deducted from the 18,000 pound weight 
allowance. The PBP&E shipment should then be made separately from the 
HHG shipment and is an administrative expense to your agency.


Sec. 302-7.303  What guidelines must we follow when authorizing 
transportation of PBP&E as an administrative expense?

    You have the sole discretion to authorize transportation of PBP&E 
provided that:
    (a) An itemized inventory of PBP&E is provided for review by the 
authorizing official at the new official station;
    (b) The authorizing official has certified that the PBP&E are 
necessary for performance of the employee's duties at the new duty 
station, and if these items were not transported, the same or similar 
items would have to be obtained at Government expense for the 
employee's use at the new official station; and
    (c) You have acquired evidence that transporting the PBP&E would 
cause the employee's HHG to exceed 18,000 pound maximum weight 
allowances.

    Note to Sec. 302-7.303: PBP&E transported as an agency 
administrative expense to an OCONUS location may be returned to 
CONUS as an agency administrative expense for an employee separating 
from Government service.

Sec. 302-7.304  When HHG are shipped under the actual expense method, 
and PBP&E as an administrative expense, in the same lot, are separate 
weight certificates required?

    Yes, the weight of the PBP&E and the administrative appropriation 
chargeable must be listed as separate items on the bill of lading or 
other shipping document.

PART 302-8--ALLOWANCES FOR EXTENDED STORAGE OF HOUSEHOLD GOODS 
(HHG)

Subpart A--General
Sec.
302-8.1   When may extended storage of HHG be authorized?
302-8.2   What is the purpose of extended storage?
302-8.3   How will I know when my agency has made a decision to 
authorize extended storage of my HHG?
302-8.4   May I receive an advance of funds for storage allowances 
covered by this part?
Subpart B--Extended Storage During Assignment to Isolated Locations in 
the Continental United States (CONUS)
302-8.100   What is the policy for extended storage of HHG during 
assignment to isolated locations in CONUS?
302-8.101   What are the criteria for determining whether an 
official station is an isolated official station for purposes of 
this part?
302-8.102   Am I eligible for extended storage of HHG and personal 
effects?
302-8.103   Where may my HHG be stored?
302-8.104   What are the allowable costs for storage?
302-8.105   May I transport a portion of my HHG to the official 
station and store the remainder at Government expense?
302-8.106   May I change from temporary to extended storage?
302-8.107   May I change from storage at personal expense to 
extended storage at Government expense?
302-8.108   What is the authorized time period for extended storage 
of my HHG?
Subpart C--Extended Storage During Assignment Outside the Continental 
United States (OCONUS)
302-8.200   Am I eligible for extended storage during assignment 
OCONUS?
302-8.201   Am I entitled to reimbursement for extended storage of 
HHG?
302-8.202   Do provisions for the place, choice, or type of storage, 
allowable costs, or partial storage during assignment OCONUS differ 
from those prescribed for storage during assignment to isolated 
locations in CONUS?
302-8.203   What is the authorized time period for extended storage 
of my HHG?
Subpart D--Storage During School Recess for Department of Defense 
Overseas Dependents School (DoDDS) Teachers
302-8.300   Under what authority am I provided storage during school 
recess?
302-8.301   What obligations do I have if I do not report for 
service at the beginning of the next school year?
Subpart E--Agency Responsibilities
302-8.400   What policies must we establish for the allowance for 
extended storage of HHG?
302-8.401   How should we administer the authorization and payment 
of extended storage of HHG?
302-8.402   May we allow the employee to determine options in the 
preference of his/her storage?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--General

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-8.1  When may extended storage of HHG be authorized?

    Your agency may authorize extended storage of HHG under the 
following circumstances:
    (a) Extended storage of HHG may be authorized in lieu of shipment 
when:
    (1) You are assigned to an isolated duty station within CONUS (see 
subpart B of this part);
    (2) You are assigned to an overseas official station where your 
agency limits the amount of HHG you may transport to that location;
    (3) You are assigned to an OCONUS official station and your agency 
determines extended storage is in the public interest or cost effective 
to do so; or
    (4) It is necessary for a temporary change of station (TCS).
    (b) Extended storage of HHG is not permitted for a career SES 
employee eligible for last move home benefits.


Sec. 302-8.2  What is the purpose of extended storage?

    The purpose of extended storage is to assist in protecting personal 
items when you are:
    (a) Authorized a temporary change of station (TCS) under Sec. 302-
3.400 of this chapter;
    (b) Assigned to isolated locations in CONUS to which the employee 
cannot take or at which the employee is unable to use his/her HHG and 
personal effects because of the absence of residence quarters at that 
location,
    (c) Assigned OCONUS when:
    (1) The official station is one to which you cannot take or at 
which you are

[[Page 58224]]

unable to use your HHG and your personal effects; or
    (2) The head of your agency authorizes storage of your HHG is in 
the public interest or is more economical than transporting; or
    (d) Storage is necessary during school recess for DoDDS teachers.


Sec. 302-8.3  How will I know when my agency has made a decision to 
authorize extended storage of my HHG?

    Your agency will indicate on your travel authorization the specific 
allowances you are authorized as provided in this chapter.


Sec. 302-8.4  May I receive an advance of funds for storage allowances 
covered by this part?

    No, an advance of funds is not allowed for storage allowances of 
HHG.

Subpart B--Extended Storage During Assignment to Isolated Locations 
in the Continental United States (CONUS)


Sec. 302-8.100  What is the policy for extended storage of HHG during 
assignment to isolated locations in CONUS?

    Extended storage of HHG belonging to an employee transferred or a 
new appointee assigned to an official station at an isolated location 
in CONUS may be allowed only when it is clearly justified under the 
conditions in this part and is not primarily for the convenience, or at 
the request of, the employee or the new appointee.


Sec. 302-8.101  What are the criteria for determining whether an 
official station is an isolated official station for purposes of this 
part?

    (a) As determined by your agency, an official station at an 
isolated location is a place of permanent duty assignment in CONUS at 
which you have no alternative except to live where you are unable to 
use your HHG because:
    (1) The type of quarters you are required to occupy at the isolated 
official station will not accommodate your HHG; or
    (2) Residence quarters which would accommodate your HHG are not 
available within reasonable daily commuting distance of the official 
station.
    (b) The designation of an official station as isolated in 
accordance with paragraph (a) of this section shall not preclude a 
determination in individual instances that adequate housing is 
available for some employees stationed there based on housing which may 
be available within daily commuting distance and the size and other 
characteristics of each employee's immediate family. In such instances 
the station shall not be considered isolated with regard to you if your 
agency determines adequate family housing is available for you.

    Note to Sec. 302-8.101: Heads of agencies concerned are 
responsible for designating the isolated official station at which 
conditions exist for allowing extended storage of HHG at Government 
expense for some or all employees.

Sec. 302-8.102  Am I eligible for extended storage of HHG and personal 
effects?

    Yes, you are eligible for extended storage of HHG and personal 
effects if:
    (a) You are stationed at an isolated official station which your 
agency determines meets the criteria in Sec. 302-8.101;
    (b) You performed relocation travel or travel as a new appointee; 
and
    (c) Your agency authorizes payment for extended storage of your 
HHG.


Sec. 302-8.103  Where may my HHG be stored?

    Your HHG may be stored either in:
    (a) Available Government-owned storage space; or
    (b) Suitable commercial storage space obtained by the Government 
if:
    (1) Government-owned space is not available, or
    (2) Commercial storage space is more economical or suitable because 
of location, transportation costs, or for other reasons.


Sec. 302-8.104  What are the allowable costs for storage?

    Allowable costs for storage include the cost of:
    (a) Necessary packing;
    (b) Crating;
    (c) Unpacking;
    (d) Uncrating;
    (e) Transportation to and from place of storage;
    (f) Charges while in storage; and
    (g) Other necessary charges directly relating to the storage as 
approved by your agency.


Sec. 302-8.105  May I transport a portion of my HHG to the official 
station and store the remainder at Government expense?

    Yes, you may transport a portion of your HHG to the official 
station and store the remainder at Government expense, if authorized by 
your agency. The combined weight, however, of the HHG stored and 
transported must not exceed the maximum 18,000 pounds net weight.


Sec. 302-8.106  May I change from temporary to extended storage?

    Yes, you may change from temporary to extended storage, if 
authorized by your agency.


Sec. 302-8.107  May I change from storage at personal expense to 
extended storage at Government expense?

    Yes, you may change from storage at personal expense to extended 
storage at Government expense, if authorized by your agency.


Sec. 302-8.108  What is the authorized time period for extended storage 
of my HHG?

    The authorized time period for extended storage of your HHG is for 
the duration of the assignment not to exceed 3-years. However:
    (a) Your agency will conduct periodic reviews to determine whether 
current housing conditions at your isolated official station warrant 
continuation of storage;
    (b) Eligibility for extended storage at Government expense will 
terminate on your last day of active duty at the isolated official 
station. However your HHG may remain in temporary storage for an 
additional period of time not to exceed 90 days, if approved by your 
agency.
    (c) When eligibility ceases, storage at Government expense may 
continue until the beginning of the second month after the month in 
which your tour at the official station OCONUS terminates, unless to 
avoid inequity your agency extends the period.

Subpart C--Extended Storage During Assignment Outside the 
Continental United States (OCONUS)


Sec. 302-8.200  Am I eligible for extended storage during assignment 
OCONUS?

    Yes, you are eligible for extended storage during assignment OCONUS 
if your agency authorizes it, and if:
    (a) The official station is one to which you are not authorized to 
take, or at which you are unable to use, your HHG; or
    (b) Your agency authorizes it as being in the public interest; or
    (c) Your agency determines the estimated cost of storage would be 
less than the cost of round-trip transportation (including temporary 
storage) of the HHG to your new official station.


Sec. 302-8.201  Am I entitled to reimbursement for extended storage of 
HHG?

    No, your agency will determine when it is in the Government's 
interest to reimburse you for extended storage of HHG OCONUS.

[[Page 58225]]

Sec. 302-8.202  Do provisions for the place, choice, or type of 
storage, allowable costs, or partial storage during assignment OCONUS 
differ from those prescribed for storage during assignment to isolated 
locations in CONUS?

    No; the same allowable extended storage expenses provided in 
Secs. 302-8.103 through 302-8.108 apply to extended storage OCONUS.


Sec. 302-8.203  What is the authorized time period for extended storage 
of my HHG?

    Time limitations for extended storage of your HHG will be 
determined by your agency as follows:
    (a) For the duration of the OCONUS assignment plus 30 days prior to 
the time the tour begins and plus 60 days after the tour is completed;
    (b) Extensions may be allowed for subsequent service or tours of 
duty at the same or other overseas stations if you continue to be 
eligible as set forth in Sec. 302-8.200; and
    (c) When eligibility ceases, storage at Government expense may 
continue until the beginning of the second month after the month in 
which your tour at the official station OCONUS terminates, unless to 
avoid inequity your agency extends the period.

Subpart D--Storage During School Recess for Department of Defense 
Overseas Dependents School (DoDDS) Teachers


Sec. 302-8.300  Under what authority am I provided storage during 
school recess?

    (a) Description. The Department of Defense Overseas Teachers Pay 
and Personnel Practices Act (20 U.S.C. 905) provides authority for the 
storage of the HHG of DoDDS teachers during the recess period between 2 
consecutive school years.
    (b) Regulations. See the DoD Joint Travel Regulations (JTR), Volume 
2, published by the Per Diem, Travel and Transportation Allowance 
Committee and available on the world wide web at http://www.dtic.mil/perdiem.


Sec. 302-8.301  What obligations do I have if I do not report for 
service at the beginning of the next school year?

    If you do not report for service at the beginning of the next 
school year, you must repay the Government for the cost of the extended 
storage of your HHG during the recess. Except for reasons beyond your 
control and acceptable to DoD, you shall be obligated to reimburse DoD 
the amount paid for the commercial storage, including related services. 
If, however, the property was stored in a Government facility, you 
shall pay DoD an amount equal to the reasonable value of the storage 
furnished, including related services.

Subpart E--Agency Responsibilities

    Note to subpart E: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-8.400  What policies must we establish for the allowance for 
extended storage of HHG?

    You must establish policies and procedures governing this part 
including:
    (a) When you will authorize payment;
    (b) Who will determine whether payment is appropriate;
    (c) How and when reimbursements will be paid;
    (d) Which locations meet the criteria of this part for isolated 
official station at which conditions exist for allowing extended 
storage at Government expense for some or all employees;
    (e) Who will determine the duration and place of extended storage.


Sec. 302-8.401  How should we administer the authorization and payment 
of extended storage of HHG?

    You should limit payment of extended storage of HHG to only those 
expenses that are necessary and in the interest of the Government.


Sec. 302-8.402  May we allow the employee to determine options in the 
preference of his/her storage?

    Yes, the employee may determine options in the preference of his/
her storage. You may authorize the employee to:
    (a) Transport a portion of his/her HHG to the official station and 
store the remainder at Government expense;
    (b) Change from temporary to extended storage; and
    (c) Change from storage at personal expense to extended storage at 
Government expense.

PART 302-9--ALLOWANCES FOR TRANSPORTATION AND EMERGENCY STORAGE OF 
A PRIVATELY OWNED VEHICLE

Subpart A--General Rules
Sec.
302-9.1  What is a ``privately owned vehicle (POV)''?
302-9.2  What is an ``official station'' for purposes of this part?
302-9.3  What is a ``post of duty'' for purposes of this part?
302-9.4  What are the purposes of the allowance for transportation 
of a POV?
302-9.5  What is the purpose of the allowance for emergency storage 
of a POV?
302-9.6  What POV transportation and emergency storage may my agency 
authorize at Government expense?
302-9.7  Must my agency authorize transportation or emergency 
storage of my POV?
302-9.8  What type of POV may I be authorized to transport, and if 
necessary, store under emergency circumstances?
302-9.9  For what transportation expenses will my agency pay?
302-9.10  For what POV emergency storage expenses will my agency 
pay?
302-9.11  May I receive an advance of funds for transportation and 
emergency storage of my POV?
302-9.12  May my agency determine that driving my POV is more 
advantageous and limit my reimbursement to what it would cost to 
drive my POV?
Subpart B--Transportation

General

302-9.100  Who is eligible for transportation of a POV to a post of 
duty?
302-9-101  In what situations may my agency authorize transportation 
of a POV to my post of duty?
302-9.102  How many POV's may I transport to a post of duty?
302-9.103  Do I have to ship my POV to my actual post of duty?
302-9.104  What may I do if there is no port or terminal at the 
point of origin and/or destination?

POV Transportation at Time of Assignment

302-9.140  Under what specific conditions may my agency authorize 
transportation of a POV to my post of duty upon my assignment to 
that post of duty?
302-9.141  What is the ``authorized point of origin'' when I 
transport a POV to my post of duty?
302-9.142  What will I be reimbursed if I transport a POV from a 
point of origin that is different from the authorized point of 
origin?
302-9.143  When I am authorized to transport a POV, may I have the 
manufacturer or the manufacturer's agent transport a new POV from 
the factory or other shipping point directly to my post of duty?

POV Transportation Subsequent to the Time of Assignment

302-9.170  Under what specific conditions may my agency authorize 
transportation of a POV to my post of duty subsequent to the time of 
my assignment to that post duty?
302-9.171  If circumstances warrant an authorization to transport a 
POV to my post of duty after my assignment to the post of duty, must 
I sign a new service agreement?
302-9.172  Under what conditions may my agency authorize 
transportation of a replacement POV to my post of duty?
302-9.173  How many replacement POV's may my agency authorize me to 
transport to my post of duty at Government expense?
302-9.174  What is the ``authorized point of origin'' when I 
transport a POV, including a replacement POV, to my post of duty 
subsequent to the time of my assignment to that post of duty?

[[Page 58226]]

302-9.175  When I am authorized to transport a POV, including a 
replacement POV, to my post of duty subsequent to the time of my 
assignment to that post of duty, may I have the manufacturer or the 
manufacturer's agent transport a new POV from the factory or other 
shipping point directly to my post of duty?
Subpart C--Return Transportation of a POV From a Post of Duty
302-9.200  When am I eligible for return transportation of a POV 
from my post of duty?
302-9.201  In what situations will my agency pay to transport a POV 
from my post of duty?
302-9.202  When do I become entitled to return transportation of my 
POV from my post of duty to an authorized destination?
302-9.203  Is there any circumstance under which I may be authorized 
to transport my POV from a post of duty before completing my service 
agreement?
302-9.204  What is the ``authorized point of origin'' when I 
transport my POV from my post of duty?
302-9.205  What is the ``authorized destination'' of a POV 
transported under this subpart?
302-9.206  What should I do if there is no port or terminal at my 
authorized point of origin or authorized destination when I 
transport a POV from my post of duty?
302-9.207  What will I be reimbursed if I transport my POV from a 
point of origin or to a destination that is different from my 
authorized origin or destination?
302-9.208  If I retain my POV at my post of duty after conditions 
change to make use of the POV no longer in the best interest of the 
Government, may I transport it at Government expense from the post 
of duty at a later date?
302-9.209  Under what conditions may my agency authorize me to 
transport from my post of duty a replacement POV purchased at that 
post of duty?
Subpart D--Transportation of a POV Within the Continental United States 
(CONUS)
302-9.300   When am I eligible for transportation of my POV within 
CONUS at Government expense?
302-9.301   Under what conditions may my agency authorize 
transportation of my POV within CONUS?
302-9.302   How many POV's may I transport within CONUS?
302-9.303   If I am authorized to transport my POV within CONUS, 
where must the transportation originate?
302-9.304   If I am authorized to transport my POV within CONUS, 
what must the destination be?
Subpart E--Emergency Storage of a POV
302-9.400   When am I eligible for emergency storage of my POV?
302-9.401   Where may I store my POV if I receive notice to evacuate 
my immediate family and/or household goods from my post of duty?
Subpart F--Agency Responsibilities
302-9.500   What means of transportation may we authorize for POV's?
302-9.501   How should we administer the allowances for 
transportation and emergency storage of a POV?
302-9.502   What governing policies must we establish for the 
allowances for transportation and emergency storage of a POV?
302-9.503   Under what condition may we authorize transportation of 
a POV to a post of duty?
302-9.504   What factors must we consider in deciding whether to 
authorize transportation of a POV to a post of duty?
302-9.505   What must we consider in determining whether 
transportation of a POV within CONUS is cost effective?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--General Rules

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-9.1  What is a ``privately owned vehicle (POV)''?

    A ``privately owned vehicle (POV)'' is a motor vehicle not owned by 
the Government and used by the employee or his/her immediate family for 
the primary purpose of providing personal transportation.


Sec. 302-9.2  What is an ``official station'' for purposes of this 
part?

    An ``official station'' is defined in part 300-3 of this title. For 
purposes of this part, an ``official station'' may be within or outside 
the continental United States (OCONUS).


Sec. 302-9.3  What is a ``post of duty'' for purposes of this part?

    For purposes of this part, a ``post of duty'' is an official 
station outside CONUS.


Sec. 302-9.4  What are the purposes of the allowance for transportation 
of a POV?

    To reduce the Government's overall relocation costs by allowing 
transportation of a POV to your official station within CONUS when it 
is advantageous and cost effective to the Government, and to improve 
our overall effectiveness if you are transferred or otherwise 
reassigned to a post of duty at which it is in the interest of the 
Government for you to have use of a POV for personal transportation.


Sec. 302-9.5  What is the purpose of the allowance for emergency 
storage of a POV?

    The purpose of the allowance for emergency storage of a POV is to 
protect a POV transported at Government expense to your post of duty 
when the head of your agency determines that the post of duty is within 
a zone from which your immediate family and/or household goods should 
be evacuated.


Sec. 302-9.6  What POV transportation and emergency storage may my 
agency authorize at Government expense?

    Your agency may authorize the following POV transportation and 
emergency storage at Government expense:
    (a)Transportation of a POV to a post of duty as provided in subpart 
B of this part.
    (b) Transportation of a POV from a post of duty as provided in 
subpart C of this part.
    (c) Transportation of a POV within CONUS as provided in subpart D 
of this part.
    (d) Emergency storage of a POV as provided in subpart E of this 
part.


Sec. 302-9.7  Must my agency authorize transportation or emergency 
storage of my POV?

    No; however, if your agency does authorize transportation of a POV 
to your post of duty and you complete your service agreement, your 
agency must pay for the cost of returning the POV. Your agency 
determines the conditions under which it will pay for transportation 
and emergency storage and the procedures a transferred employee must 
follow.


Sec. 302-9.8  What type of POV may I be authorized to transport, and if 
necessary, store under emergency circumstances?

    Only a passenger automobile, station wagon, light truck, or other 
similar vehicle that will be used primarily for personal transportation 
may be authorized to transport, and if necessary store under emergency 
circumstances. You may not transport or store a trailer, airplane, or 
any vehicle intended for commercial use.


Sec. 302-9.9  For what transportation expenses will my agency pay?

    When your agency authorizes transportation of your POV, it will pay 
for all necessary and customary expenses directly related to the 
transportation of the POV, including crating and packing expenses, 
shipping charges, and port charges for readying the POV for shipment at 
the port of embarkation, and for use at the port of debarkation.


Sec. 302-9.10  For what POV emergency storage expenses will my agency 
pay?

    Your agency will pay all necessary storage expenses, including but 
not limited to readying the POV for storage,

[[Page 58227]]

local transportation to point of storage, storage, readying the POV for 
use after storage, and local transportation from the point of storage. 
Insurance on the POV is at your expense, unless it is included in the 
expenses allowed by this paragraph.


Sec. 302-9.11  May I receive an advance of funds for transportation and 
emergency storage of my POV?

    Yes, you may receive advance funds in accordance with Sec. 302-2.20 
of this chapter and not to exceed the estimated amount of the expenses 
authorized under this part for transportation and emergency storage of 
your POV.


Sec. 302-9.12  May my agency determine that driving my POV is more 
advantageous and limit my reimbursement to what it would cost to drive 
my POV?

    Yes, your agency decides whether it is more advantageous for you 
and/or a member of your immediate family to drive your POV for all or 
part of the distance or to have it transported. If your agency decides 
that driving the POV is more advantageous, your reimbursement will be 
limited to the allowances provided in part 302-4 of this chapter for 
the travel and transportation expenses you and/or your immediate family 
incur en route.

Subpart B--Transportation

General


Sec. 302-9.100  Who is eligible for transportation of a POV to a post 
of duty?

    An employee who is authorized to transfer to the post of duty, or a 
new appointee or student trainee assigned to the post of duty.


Sec. 302-9.101  In what situations may my agency authorize 
transportation of a POV to my post of duty?

    Your agency may authorize transportation when:
    (a) At the time of your assignment, conditions warrant such 
authorization under Sec. 302-9.140;
    (b) Conditions that once precluded prior authorization have changed 
to warrant such authorization under Sec. 302-9.170; or
    (c) Subsequent to the time of your assignment, conditions warrant 
authorization under Sec. 302-9.172 of a replacement POV.


Sec. 302-9.102  How many POV's may I transport to a post of duty?

    You may transport one POV to a post of duty. However, this does not 
limit the transportation of a replacement POV when authorized under 
Sec. 302-9.172.


Sec. 302-9.103  Do I have to ship my POV to my actual post of duty?

    Yes, you must ship your POV to your actual post of duty. You may 
not transport the POV to an alternate location.


Sec. 302-9.104  What may I do if there is no port or terminal at the 
point of origin and/or destination?

    If there is no port or terminal at the point of origin and/or 
destination, your agency will pay the entire cost of transporting the 
POV from your point of origin to your destination. If you prefer, 
however, you may choose to drive your POV from your point of origin at 
time of assignment to the nearest embarkation port or terminal, and/or 
from the debarkation port or terminal nearest your destination to your 
post of duty at any time. If you choose to drive, you will be 
reimbursed your one-way mileage cost, at the rate specified in part 
301-4 of this title, for driving the POV from your authorized origin to 
deliver it to the port of embarkation, or from the port of debarkation 
to the authorized destination. For the segment of travel from the port 
of embarkation back to your authorized origin after delivering the POV 
to the port or from your authorized destination to the port of 
debarkation to pick up the POV, you will be reimbursed your one-way 
transportation cost. The total cost of round-trip travel, to deliver 
the POV to the port at the origin or to pick up the POV at the port at 
your destination, may not exceed the cost of transporting the POV to or 
from the port involved. You may not be reimbursed a per diem allowance 
for round-trip travel to and from the port involved.

POV Transportation at Time of Assignment


Sec. 302-9.140  Under what specific conditions may my agency authorize 
transportation of a POV to my post of duty upon my assignment to that 
post of duty?

    Your agency may authorize transportation of a POV to your post of 
duty when:
    (a) It has determined in accordance with Sec. 302-9.503 that it is 
in the interest of the Government for you to have use of your POV at 
the post of duty;
    (b) You have signed a service agreement; and
    (c) You meet any specific conditions your agency has established.


Sec. 302-9.141  What is the ``authorized point of origin'' when I 
transport a POV to my post of duty?

    Your ``authorized point of origin'' is as follows:

------------------------------------------------------------------------
                                             Your ``authorized point of
               If you are a                       origin'' is your
------------------------------------------------------------------------
(a) Transferee............................  Old official station.
(b) New appointee or student trainee......  Place of actual residence.
------------------------------------------------------------------------

Sec. 302-9.142  What will I be reimbursed if I transport a POV from a 
point of origin that is different from the authorized point of origin?

    If you transport a POV from a point of origin that is different 
from the authorized point of origin, you will be reimbursed the 
transportation costs you incur, not to exceed the cost of transporting 
your POV from your authorized point of origin to your post of duty.


Sec. 302-9.143  When I am authorized to transport a POV, may I have the 
manufacturer or the manufacturer's agent transport a new POV from the 
factory or other shipping point directly to my post of duty?

    Yes, when you are authorized to transport a POV, you may have the 
manufacture or the manufacturer's agent transport a new POV from the 
factory or other shipping point directly to your post of duty provided:
    (a) You purchased the POV new from the manufacturer or 
manufacturer's agent;
    (b) The POV is transported FOB-shipping point, consigned to you 
and/or a member of your immediate family, or your agent; and
    (c) Ownership of the POV is not vested in the manufacturer or the 
manufacturer's agent during transportation. In this circumstance, you 
will be reimbursed for the POV transportation costs, not to exceed the 
cost of transporting the POV from your authorized point of origin to 
your post of duty.

POV Transportation Subsequent to the Time of Assignment


Sec. 302-9.170  Under what specific conditions may my agency authorize 
transportation of a POV to my post of duty subsequent to the time of my 
assignment to that post?

    Your agency may authorize transportation of a POV to your post of 
duty subsequent to the time of your assignment to that post when:
    (a) You do not have a POV at your post of duty;
    (b) You have not previously been authorized to transport a POV to 
that post of duty;
    (c) You have not previously transported a POV outside CONUS during 
your assignment to that post of duty;

[[Page 58228]]

    (d) Your agency has determined in accordance with Sec. 302-9.503 
that it is in the interest of the Government for you to have use of 
your POV at the post of duty; and
    (e) You signed a service agreement at the time you were transferred 
in the interest of the Government, or assigned if you were a new 
appointee or student trainee, to your post of duty; and
    (f) You meet any specific conditions your agency has established.


Sec. 302-9.171  If circumstances warrant an authorization to transport 
a POV to my post of duty after my assignment to the post of duty, must 
I sign a new service agreement?

    No, if circumstances changed after arrival at your new post of duty 
to warrant authorization to transport a POV, you are not required to 
sign a new service agreement, provided a service agreement was signed 
at the time of your assignment to the post of duty. Violation of that 
service agreement, however, will result in your personal liability for 
the cost of transporting the POV.


Sec. 302-9.172  Under what conditions may my agency authorize 
transportation of a replacement POV to my post of duty?

    Your agency may authorize transportation of a replacement POV to 
your post of duty when:
    (a) You require an emergency replacement POV and you meet the 
following conditions:
    (1) You had a POV which was transported to your post of duty at 
Government expense; and
    (2) You require a replacement POV for reasons beyond your control 
and acceptable to your agency, such as the POV is stolen, or seriously 
damaged or destroyed, or has deteriorated due to conditions at the post 
of duty; and
    (3) Your agency determines in advance of authorization that a 
replacement POV is necessary and in the interest of the Government; or
    (b) You require a non-emergency replacement POV and you meet the 
following conditions:
    (1) You have a POV which was transported to a post of duty at 
Government expense;
    (2) You have been stationed continuously during a 4-year period at 
one or more posts of duty; and
    (3) Your agency has determined that it is in the Government's 
interest for you to continue to have a POV at your post of duty.


Sec. 302-9.173  How many replacement POV's may my agency authorize me 
to transport to my post of duty at Government expense?

    Your agency may authorize one emergency replacement POV within any 
4-year period of continuous service. It may authorize one non-emergency 
replacement POV after every four years of continuous service beginning 
on the date you first have use of the POV being replaced.


Sec. 302-9.174  What is the ``authorized point of origin'' when I 
transport a POV, including a replacement POV, to my post of duty 
subsequent to the time of my assignment to that post of duty?

    Your agency determines the authorized point of origin within the 
United States when you transport a POV, including a replacement POV, to 
your post of duty subsequent to the time of your assignment to that 
post of duty.


Sec. 302-9.175  When I am authorized to transport a POV, including a 
replacement POV, to my post of duty subsequent to the time of my 
assignment to that post of duty, may I have the manufacturer or the 
manufacturer's agent transport a new POV from the factory or other 
shipping point directly to my post of duty?

    Yes, you may have the manufacture or manufacture's agent transport 
a new POV from the factory or other shipping point to your post of duty 
under the same conditions specified in Sec. 302-9.143.

Subpart C--Return Transportation of a POV From a Post of Duty


Sec. 302-9.200  When am I eligible for return transportation of a POV 
from my post of duty?

    You are eligible for POV transportation from your post of duty 
when:
    (a) You were transferred to a post of duty in the interest of the 
Government; and
    (b) You have a POV at the post of duty.


Sec. 302-9.201  In what situations will my agency pay to transport a 
POV from my post of duty?

    Your agency will pay to transport a POV from your post of duty 
when:
    (a) You are transferred back to the official station (including 
post of duty) from which you transferred to your current post of duty;
    (b) You are transferred to a new official station within CONUS;
    (c) You are transferred to a new post of duty, where your agency 
determines that use of a POV at that location is not in the interest of 
the Government;
    (d) You separate from Government service after completion of an 
agreed period of service at the post of duty where your agency 
determined the use of a POV to be in the interest of the Government;
    (e) You separate from Government service prior to completion of an 
agreed period of service at the post of duty where your agency 
determined the use of a POV to be in the interest of the Government, 
and the separation is for reasons beyond your control and acceptable to 
your agency; or
    (f) Conditions change at your post of duty such that use of the POV 
no longer is in the best interest of the Government.


Sec. 302-9.202  When do I become entitled to return transportation of 
my POV from my post of duty to an authorized destination?

    You become entitled to return transportation of your POV from your 
post of duty to an authorized destination when:
    (a) Your agency determined the use of a POV at your post of duty 
was in the interest of the Government;
    (b) You have the POV at your post of duty; and
    (c) You have completed your service agreement.


Sec. 302-9.203  Is there any circumstance under which I may be 
authorized to transport my POV from a post of duty before completing my 
service agreement?

    Yes, if conditions change at your post of duty such that use of 
your POV no longer is in the interest of the Government, or if you 
separate from Government service prior to completion of your service 
agreement for reasons beyond your control and acceptable to your 
agency, your agency may authorize return transportation to your 
authorized destination. When the return transportation is based on 
changed conditions, you are still required to complete your service 
agreement. If you do not, you will be required to repay the 
transportation costs.


Sec. 302-9.204  What is the ``authorized point of origin'' when I 
transport my POV from my post of duty?

    The ``authorized point of origin'' when you transport your POV from 
your post of duty is the last post of duty to which you were authorized 
to transport your POV at Government expense.


Sec. 302-9.205  What is the ``authorized destination'' of a POV 
transported under this subpart?

    The ``authorized destination'' of a POV transported under this 
subpart is illustrated in the following table:

------------------------------------------------------------------------
                                             The authorized destination
                    If                       of the POV you transport at
                                                Government expense is
------------------------------------------------------------------------
(a) You are transferred to an Official      Your official station.
 station within CONUS.

[[Page 58229]]

 
(b)(1) You are transferred to another post  Your place of actual
 of duty and use of a POV at the new post    residence.
 is not in the interest of the Government;.
(2) You separate from Government service    Your place of actual
 and are eligible for transportation of      residence.
 your POV from your post of duty; or.
(3) Conditions change at your post of duty  Your place of actual
 such that use of your POV no longer is in   residence.
 the interest of the Government at that
 post of duty.
------------------------------------------------------------------------

Sec. 302-9.206  What should I do if there is no port or terminal at my 
authorized point of origin or authorized destination when I transport a 
POV from my post of duty?

    If there is no port or terminal at your authorized point of origin 
or authorized destination, your agency will pay the entire cost of 
transporting the POV from your authorized origin to your authorized 
destination. If you prefer, however, you may choose to drive your POV 
to the port of embarkation and/or from the port of debarkation. If you 
choose to drive, you will be reimbursed in the same manner as an 
employee under Sec. 302-9.104.


Sec. 302-9.207  What will I be reimbursed if I transport my POV from a 
point of origin or to a destination that is different from my 
authorized origin or destination?

    You will be reimbursed the transportation costs you actually incur, 
not to exceed what it would have cost to transport your POV from your 
authorized origin to the authorized destination.


Sec. 302-9.208  If I retain my POV at my post of duty after conditions 
change to make use of the POV no longer in the best interest of the 
Government, may I transport it at Government expense from the post of 
duty at a later date?

    Yes, your agency will pay the transportation costs not to exceed 
the cost of transporting it to the authorized destination, provided you 
otherwise meet all conditions for transporting a POV.


Sec. 302-9.209  Under what conditions may my agency authorize me to 
transport from my post of duty a replacement POV purchased at that post 
of duty?

    Your agency may authorize transportation of a replacement POV 
purchased at a post of duty from the same post of duty only if:
    (a) At the time you purchased the replacement POV, you met the 
conditions in Sec. 302-9.172; and
    (b) Prior to purchase of the replacement POV, your agency 
authorized you to purchase a replacement POV at the post of duty.

Subpart D--Transportation of a POV Within the Continental United 
States (CONUS)


Sec. 302-9.300  When am I eligible for transportation of my POV within 
CONUS at Government expense?

    You are eligible for transportation of your POV within CONUS at 
Government expenses when:
    (a) You are an employee who transfers within CONUS in the interest 
of the Government; or
    (b) You are a new appointee or student trainee relocating to your 
first official station within CONUS.


Sec. 302-9.301  Under what conditions may my agency authorize 
transportation of my POV within CONUS?

    Your agency will authorize transportation of your POV within CONUS 
only when:
    (a) It has determined that use of your POV to transport you and/or 
your immediate family from your old official station (or place of 
actual residence, if you are a new appointee or student trainee) to 
your new official station would be advantageous to the Government;
    (b) Both your old official station (or place of actual residence, 
if you are a new appointee or student trainee) and your new official 
station are located within CONUS; and
    (c) Your agency further determines that it would be more 
advantageous and cost effective to the Government to transport your POV 
to the new official station at Government expense and to pay for 
transportation of you and/or your immediate family by commercial means 
than to have you or an immediate family member drive the POV to the new 
official station.


Sec. 302-9.302  How many POV's may I transport within CONUS?

    You may transport any number of POV's within CONUS under this 
subpart, provided your agency determines such transportation is 
advantageous and cost effective to the Government.


Sec. 302-9.303  If I am authorized to transport my POV within CONUS, 
where must the transportation originate?

    If you are authorized to transport your POV within CONUS, the 
transportation must originate as illustrated in the following table:

------------------------------------------------------------------------
                                              Your transportation must
               If you are a                       originate at your
------------------------------------------------------------------------
(a) Transferee............................  Old official station.
(a) New appointee or Student trainee......  Place of actual residence.
------------------------------------------------------------------------

Sec. 302-9.304  If I am authorized to transport my POV within CONUS, 
what must the destination be?

    If you are authorized to transport your POV within CONUS your 
destination must be your new official station.

Subpart E--Emergency Storage of a POV


Sec. 302-9.400  When am I eligible for emergency storage of my POV?

    You are eligible for emergency storage of your POV when:
    (a) Your POV was transported to your post of duty at Government 
expense; and
    (b) The head of your agency determines that your post of duty is 
within a zone from which your immediate family and/or household goods 
should be evacuated.


Sec. 302-9.401  Where may I store my POV if I receive notice to 
evacuate my immediate family and/or household goods from my post of 
duty?

    If you receive notice to evacuate your immediate family and/or HHG 
for your post of duty, you may store your POV at a place determined to 
be reasonable by your agency whether the POV is already located at, or 
being transported to, your post of duty.

Subpart F--Agency Responsibilities

    Note to subpart F: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-9.500  What means of transportation may we authorize for 
POV's?

    You may authorize:
    (a) Commercial means of transportation for POV's if available at 
reasonable rates and under reasonable conditions; or
    (b) Government means of transportation for POV's on a space-
available basis.


Sec. 302-9.501  How should we administer the allowances for 
transportation and emergency storage of a POV?

    To minimize costs and promote an efficient workforce, you should 
provide an employee use of his/her POV when it mutually benefits the 
Government and the employee.

[[Page 58230]]

Sec. 302-9.502  What governing policies must we establish for the 
allowances for transportation and emergency storage of a POV?

    You must establish policies governing:
    (a) When you will authorize transportation and emergency storage of 
a POV;
    (b) When you will authorize transportation of a replacement POV;
    (c) Who will determine if transportation of a POV to or from a post 
of duty is in the interest of the Government;
    (d) Who will determine if conditions have changed at an employee's 
post of duty to warrant transportation of a POV in the interest of the 
Government;
    (e) Who will determine if transportation of a POV wholly within 
CONUS is more advantageous and cost effective than having the employee 
drive the POV to the new official station; and
    (f) Who will determine whether to allow emergency storage of an 
employee's POV, including where to store the POV.


Sec. 302-9.503  Under what condition may we authorize transportation of 
a POV to a post of duty?

    You may authorize transportation of a POV to a post of duty only 
when you determine, after consideration of the factors in Sec. 302-
9.504, that it is in the interest of the Government for the employee to 
have use of a POV at the post of duty.


Sec. 302-9.504  What factors must we consider in deciding whether to 
authorize transportation of a POV to a post of duty?

    When deciding whether to authorize transportation of a POV to a 
post of duty, you must consider if:
    (a) Local conditions at the employee's post of duty warrant use of 
a POV;
    (b) Use of the POV will contribute to the employee's effectiveness 
on the job;
    (c) Use of a POV of the type involved will be suitable under local 
conditions at the post of duty; and
    (d) The cost of transporting the POV to and from the post of duty 
will be excessive, considering the time the employee has agreed to 
serve.


Sec. 302-9.505  What must we consider in determining whether 
transportation of a POV within CONUS is cost effective?

    When determining whether transportation of a POV within CONUS is 
cost effective, you must consider the:
    (a) Cost of traveling by POV;
    (b) Cost of transporting the POV;
    (c) Cost of travel if the POV is transported;
    (d) Productivity benefit you derive from the employee's accelerated 
arrival at the new official station.

PART 302-10--ALLOWANCES TRANSPORTATION OF MOBILE HOMES AND BOATS 
USED AS A PRIMARY RESIDENCE

Subpart A--Eligibility and Limitations
Sec.
302-10.1   May I be reimbursed for transporting my mobile home 
instead of an HHG shipment?
302-10.2   Are there any eligibility requirements?
302-10.3   What is the maximum amount my agency may authorize me to 
receive for transporting a mobile home?
302-10.4   Are there any geographic limitations for transportation 
of a mobile home?
302-10.5   May I transport a mobile home over water?
302-10.6   Are the allowances for transporting a mobile home in 
addition to the allowances for per diem, mileage, and transportation 
expenses, for me and my immediate family member(s)?
Subpart B--Computation of Distance
302-10.100   What distance will my agency allow for points of origin 
and destination within CONUS and Alaska?
302-10.101   Must I furnish actual odometer readings on the travel 
claim?
Subpart C--Computation of Allowances
302-10.200   What costs are allowable when a commercial carrier 
transports my mobile home overland or over water?
302-10.201   What is the mileage allowance when you transport a 
mobile home overland by a POV?
302-10.202   Am I entitled to any other allowances when I transport 
my mobile home by POV?
302-10.203   What are my allowances when a mobile home is 
transported partly by commercial carrier and partly by POV?
302-10.204   What costs are allowed for preparing a mobile home for 
shipment?
302-10.205   Are there any costs for preparation that are not 
allowed?
302-10.206   May my agency assume direct responsibility for the 
costs of preparing and transporting my mobile home?
302-10.207   Am I responsible for excess or non-allowable charges?
Subpart D--Advance of Fund
302-10.300   May I receive an advance of funds when a commercial 
carrier transports the mobile home?
302-10.301   May I receive an advance of funds when payment is made 
directly to the carrier by my agency?
Subpart E--Agency Responsibilities
302-10.400   What policies must we establish for authorizing 
transportation of a mobile home?
302-10.401   Are the allowances for transporting a mobile home in 
addition to the allowances for per diem, mileage, and transportation 
expenses, for an employee and immediate family member(s)?
302-10.402   What costs must we pay a commercial carrier for 
transporting a mobile home?
302-10.403   What costs must we allow for preparing a mobile home 
for shipment?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905 (a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--Eligibility and Limitations

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 302-10.1  May I be reimbursed for transporting my mobile home 
instead of an HHG shipment?

    Yes, if you are eligible for the transportation of HHG, you will be 
reimbursed for transporting a mobile home instead of an HHG shipment, 
not to exceed what the Government would incur for the transportation of 
your HHG and 90-days temporary storage.


Sec. 302-10.2  Are there any eligibility requirements?

    Yes, to have a mobile home transported at Government expense, you 
must certify that the mobile home will be used at the new official 
station as your primary residence and/or the primary residence of your 
immediate family.


Sec. 302-10.3  What is the maximum amount my agency may authorize me to 
receive for transporting a mobile home?

    The maximum amount your agency may authorize you to receive for 
transporting a mobile home shall not exceed the cost of transporting 
18,000 pounds of HHG and 90 days of temporary storage.


Sec. 302-10.4  Are there any geographic limitations for transportation 
of a mobile home?

    Yes, allowances for overland transportation of a mobile home may be 
made only for transportation within CONUS, within Alaska, and through 
Canada en route between Alaska and CONUS or through Canada between one 
CONUS point and another (e.g. between Buffalo, NY and Detroit, MI). 
Allowances for transportation within limits prescribed may be paid even 
though the transportation involved originates, terminates, or passes 
through locations not covered, provided the amount of the allowance 
shall be computed on the basis of that part of the transportation which 
is within CONUS, within Alaska, or through Canada en route between 
Alaska and CONUS or between one CONUS point and another. The cost to 
transport a mobile home

[[Page 58231]]

may not exceed the cost of shipping 18,000 pounds of HHG and 90 days of 
temporary storage.


Sec. 302-10.5  May I transport a mobile home over water?

    Yes, you may transport a mobile home over water when both the 
points of origin and destination are within CONUS or Alaska.


Sec. 302-10.6  Are the allowances for transporting a mobile home in 
addition to the allowances for per diem, mileage, and transportation 
expenses, for me and my immediate family member(s)?

    Yes, allowances for transporting a mobile home (including mileage 
when towed by you) are in addition to the reimbursement of per diem, 
mileage, and transportation expenses for you and your immediate family 
member(s). However, you must consider the fact that the mobile home may 
be moved at Government expense only if it will be used as your 
residence at the new official station, and allowances under parts 302-
5, 302-6, and 302-11 of this chapter will be paid accordingly.

Subpart B-Computation of Distance


Sec. 302-10.100  What distance will my agency allow for points of 
origin and destination within CONUS and Alaska?

    Your agency will allow for the distance shown in standard highway 
mileage guides or agency designated official table of distances or 
actual miles driven as determined from your odometer readings, between 
the authorized origin and destination.


Sec. 302-10.101  Must I furnish actual odometer readings on the travel 
claim?

    No, you do not need to furnish odometer readings on the travel 
claim but you must indicate the total miles traveled. Any deviation 
from the distances indicated in standard highway mileage guides or 
agency official table of distances must be fully explained and 
acceptable to your agency.

Subpart C-Computation of Allowances


Sec. 302-10.200  What costs are allowable when a commercial carrier 
transports my mobile home overland or over water?

    Your agency will allow the following costs for use of a commercial 
carrier transporting your mobile home:
    (a) When transporting overland;
    (1) The carrier's charge for actual transportation of the mobile 
home (not to exceed the applicable tariff for such movements approved 
by an appropriate regulatory body), provided any substantial deviation 
from standard highway mileage guides or agency official table of 
distances is explained;
    (2) Ferry fares, bridge, road, and tunnel tolls;
    (3) Taxes, charges or fees fixed by a State or other government 
authority for permits to transport mobile homes in or through its 
jurisdiction;
    (4) Carrier's service charges for obtaining necessary permits; and
    (5) Charges for a pilot (flag) car or escort services, when 
required by State or local law.
    (b) When transporting over water cost must include, but not limited 
to the cost of:
    (1) Fuel and oil used for propulsion of the boat;
    (2) Pilots or navigators in the open water;
    (3) A crew;
    (4) Charges for harbor pilots;
    (5) Docking fees incurred in transit;
    (6) Harbor or port fees and similar charges related to entry in and 
navigation through ports; and
    (7) Towing, whether in tow or towing by pushing from behind.


Sec. 302-10.201  What is the mileage allowance when you transport a 
mobile home overland by a POV?

    The mileage allowance when you transport a mobile home overland by 
other than commercial means (e.g., towed by a POV) is eleven cents per 
mile. This is in addition to the mileage allowance prescribed for 
driving the POV under part 302-4 of this chapter.


Sec. 302-10.202  Am I entitled to any other allowances when I transport 
my mobile home by POV?

    Yes, you are also entitled to the following allowances when you 
transport your mobile home by POV:
    (a) Payment of mileage for use of a POV to transport yourself and/
or immediate family member(s) as provided in Sec. 302-4.30 of this 
chapter; and
    (b) Preparation costs as provided in Sec. 302-10.205.


Sec. 302-10.203  What are my allowances when a mobile home is 
transported partly by commercial carrier and partly by POV?

    The allowances in Secs. 302-10.200 through 302-10.202 apply to the 
respective portions of transportation by commercial carrier and POV 
when a mobile home is transported by both.


Sec. 302-10.204  What costs are allowed for preparing a mobile home for 
shipment?

    Allowable costs for preparing a mobile home for shipment include 
but are not limited to:
    (a) Blocking and unblocking (including anchoring and unanchoring);
    (b) Labor costs of removing and installing skirting;
    (c) Separating, preparing, and sealing each section for movement;
    (d) Reassembling the two halves of a double-wide mobile home;
    (e) Travel lift fees;
    (f) Rental, installation, removal and transportation of hitches and 
extra axles with wheels and tires;
    (g) Purchasing blocks in lieu of transporting blocks from old 
official station and cost of replacement blocks broken while mobile 
home was being transported;
    (h) Packing and unpacking of HHG associated with the mobile home;
    (i) Disconnecting and connecting utilities;
    (j) Installation and removal of towing lights on trailer;
    (k) Charges for reasonable extension of existing water and sewer 
lines; and
    (l) Dismantling and assembling a portable room appended to a mobile 
home.


Sec. 302-10.205  Are there any costs for preparation that are not 
allowed?

    Yes, costs for preparing a mobile home located outside Alaska or 
CONUS for movement or the costs for resettling outside Alaska or CONUS 
are not allowed.


Sec. 302-10.206  May my agency assume direct responsibility for the 
costs of preparing and transporting my mobile home?

    Yes, your agency may assume direct responsibility for the costs of 
preparing and transporting your mobile home if it is determined to be 
in the Government's interest.


Sec. 302-10.207  Am I responsible for excess or non-allowable charges?

    Yes, you are responsible for any excess preparation or 
transportation or non-allowable charges, such as:
    (a) Costs for replacement parts, tires purchases, structural 
repairs, brake repairs or any other repairs or maintenance performed;
    (b) Costs of insurance for valuation of mobile homes above 
carriers' maximum liabilities, or charges designated in the tariffs as 
``Special Service;''
    (c) Cost of storage; and
    (d) Costs of connecting/disconnecting appliances, equipment, and 
utilities involved in relocation and costs of converting appliances for 
operation on available utilities.

Subpart D--Advance of Funds


Sec. 302-10.300  May I receive an advance of funds when a commercial 
carrier transports the mobile home?

    Yes, you may receive an advance of funds when you are responsible 
for

[[Page 58232]]

arranging and paying a commercial carrier to transport your mobile 
home. However, the advance may not exceed the estimated amount 
allowable.


Sec. 302-10.301  May I receive an advance of funds when payment is made 
directly to the carrier by my agency?

    No, your agency will not authorize you an advance of funds when it 
pays the carrier directly.

Subpart E--Agency Responsibilities

    Note to subpart E: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-10.400  What policies must we establish for authorizing 
transportation of a mobile home?

    You must establish policies for authorizing transportation of a 
mobile home that implements this part including when:
    (a) It is considered in the best interest of the Government to 
assume direct responsibility for preparing and transporting an 
employee's mobile home;
    (b) To authorize an advance of funds for a commercial carrier 
transporting an employee's mobile home based on constructive or 
estimated cost when the employee assumes direct responsibility for 
payment.


Sec. 302-10.401  Are the allowances for transporting a mobile home in 
addition to the allowances for per diem, mileage, and transportation 
expenses, for an employee and immediate family member(s)?

    Yes, allowances for transporting a mobile home (including mileage 
when towed by the employee) are in addition to the allowances for per 
diem, mileage, and transportation expenses. However, you must consider 
the fact that the mobile home will be used as the employee's and/or 
immediate family member(s) primary residence at the new official 
station, and reduce the allowances under parts 302-5, 302-6, and 302-11 
of this chapter.


Sec. 302-10.402  What costs must we pay a commercial carrier for 
transporting a mobile home?

    The costs you must pay a commercial carrier for transporting a 
mobile home are prescribed in Sec. 302-10.200.


Sec. 302-10.403  What costs must we allow for preparing a mobile home 
for shipment?

    The costs you must allow for preparing a mobile home for shipment 
are prescribed in Sec. 302-10.205.

SUBCHAPTER E--RESIDENCE TRANSACTION ALLOWANCES

PART 302-11--ALLOWANCES FOR EXPENSES INCURRED IN CONNECTION WITH 
RESIDENCE TRANSACTIONS

Subpart A--General Rules
Sec.
302-11.1   What is the purpose of an allowance for expenses incurred 
in connection with residence transactions?
302-11.2  Am I eligible to receive an allowance for expenses 
incurred in connection with residence transactions?
302-11.3  Must I sign a service agreement before receiving residence 
transaction allowances?
302-11.4  Who is not eligible to receive an allowance for expenses 
incurred in connection with residence transactions?
302-11.5  To be reimbursed for expenses incurred in my residence 
transactions, must I occupy the residence at the time I am notified 
of my transfer?
302-11.6  For which expenses will I be reimbursed if I qualify for a 
residence transaction expense allowance?
302-11.7  When are expenses for my settlement of an unexpired lease 
reimbursable?
302-11.8  Must I sell a residence at the old official station to be 
eligible to purchase a residence at the new official station?

Time Limitations

302-11.21  How long do I have to submit my claim for reimbursement 
of expenses incurred in connection with my residence transactions?
302-11.22  May the 2-year time limitation be extended by my agency?
302-11.23  When must I request to have my initial time period 
extended?
Subpart B--Title Requirements
302-11.100  For which residence may I receive reimbursement for 
under this subpart?
302-11.101  Must the title to the property for which I am requesting 
an allowance for residence transactions be in my name?
302-11.102  How will the Government determine who holds title to my 
property?
302-11.103  How will I be reimbursed if I or a member of my 
immediate family do not hold full title to the property for which I 
am requesting reimbursement?
302-11.104  When must I and/or a member(s) of my immediate family 
have acquired title interest in my residence to be eligible for the 
allowance for expenses incurred in connection with the sale of my 
residence?
302-11.105  How is it determined if I hold ``equitable title 
interest'' in my residence?
302-11.106  What is an accommodation party?
Subpart C--Reimbursable Expenses
302-11.200  What residence transaction expenses will my agency pay?
302-11.201  When may my reimbursement for loan assumption fees or 
other similar fees exceed the 1 percent as specified in Sec. 302-
11.200(f)(2)?
302-11.202  What residence transaction expenses will my agency not 
pay?
Subpart D--Request For Reimbursement
302-11.300  Is there a limit on how much my agency will reimburse me 
for residence transactions?
302-11.301  How must I request reimbursement for the expenses I 
incur for my residence transactions?
302-11.302  What documentation must I submit to my agency to request 
reimbursement for the sale of a former residence or the purchase of 
a new one?
302-11.303  Will the Government reimburse me for expenses incurred 
in connection with my residence transactions that are paid by 
someone other than me or a member of my immediate family?
302-11.304  Will my agency reimburse me for losses due to market 
conditions or prices at the old and new official station?
302-11.305  Will I receive reimbursement for any residence 
transaction expenses incurred prior to being officially notified of 
my transfer?
302-11.306  How can I know if my expenses are reasonable and will be 
reimbursed by the Government?
302-11.307  May I receive an advance of funds for my residence 
transaction expenses?
302-11.308  How much will I receive for reimbursement when I 
purchase or sell land in excess of what reasonably relates to the 
residence site?
302-11.309  What residence transaction expense are reimbursable if 
an employee violates the terms of his/her service agreement?

Settlement of Unexpired Lease

302-11.320  How must I request reimbursement for settlement of an 
unexpired lease?
302-11.321  How will I be reimbursed when I share a lease with 
someone else?
Subpart E--Agency Responsibilities
302-11.400   What policies and procedures must we establish?
302-11.401   Under what conditions may we authorize or approve a 
residence transaction expense allowance?
302-11.402  Who is not eligible to receive residence transaction 
expense allowances?
302-11.403   What policies must we establish before accepting 
documentation from an employee for reimbursement of residence 
transaction expenses?
302-11.404   What controls must we establish for paying allowances 
for expenses incurred in connection with residence transactions?
302-11.405   Which agency must review and approve the employee's 
application when the employee transfers between agencies?
302-11.406   How must we administer an employee's claim?

[[Page 58233]]

302-11.407   What documentation must we require the employee to 
submit before paying residence transaction expenses?

Time Limitations

302-11.420   How long can we authorize an extension for completion 
of the sale and purchase or lease termination transactions?
302-11.421   What must we consider when authorizing an extension of 
time limitation?

Unexpired Lease

302-11.430   When must we reimburse an employee for expenses 
incurred due to settlement of an unexpired lease?
302-11.431   How must we require an employee to request 
reimbursement for expenses of an unexpired lease settlement?

Title Requirements

302-11.440   How must we determine who holds title to property for 
reimbursement purposes?
302-11.441   How must we determine if an employee holds equitable 
title interest in his/her property?

Request For Reimbursements

302-11.450   May we advance an employee funds for expenses incurred 
in connection with residence transactions?
302-11-451   What is the maximum amount that we may reimburse for 
the sale or purchase of an employee's residence?

    Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).

Subpart A--General Rules

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-11.1  What is the purpose of an allowance for expenses 
incurred in connection with residence transactions?

    The purpose of an allowance for expenses incurred in connection 
with residence transaction is to reimburse you when you transfer from 
an old official station to a new official station for expenses that you 
incur due to:
    (a) The sale of one residence at your old official duty station, 
and/or the purchase of a residence at your new official duty station; 
or
    (b) The settlement expenses for a lease which has not expired on 
your residence or mobile home lot which is used as your permanent 
residence at your old official station.


Sec. 302-11.2  Am I eligible to receive an allowance for expenses 
incurred in connection with my residence transactions?

    You are eligible to receive an allowance for expenses incurred in 
connection with your residence transactions under this subpart if you 
have signed a service agreement as specified in Sec. 302-3, subpart D 
of this chapter, and you are performing a permanent change of station 
where:
    (a) Your old and new official stations are within the United 
States; or
    (b) You transferred from an official station in the United States 
to a foreign area, and you are now transferring back to the United 
States and;
    (1) You have completed your service agreement time period for your 
overseas tour of duty; and
    (2) You are assigned to an official station in the United States 
that is more than 50 miles from your last official station in the 
United States, unless authorized otherwise in accordance with Sec. 302-
2.6 of this chapter.


Sec. 302-11.3  Must I sign a service agreement before receiving 
residence transaction allowances?

    Yes, you must sign a service agreement before receiving residence 
transaction allowances.


Sec. 302-11.4  Who is not eligible to receive an allowance for expenses 
incurred in connection with residence transactions?

    You are not eligible to receive an allowance for expenses incurred 
in connection with residence transactions under this subpart if you 
are:
    (a) A new appointee; or
    (b) An employee assigned under the Government Employees Training 
Act (5 U.S.C. 4109).


Sec. 302-11.5  To be reimbursed for expenses incurred in my residence 
transactions, must I occupy the residence at the time I am notified of 
my transfer?

    Yes, to be reimbursed for expenses incurred in your residence 
transactions, you must occupy the residence at the time you are 
notified of your transfer, unless your transfer is from a foreign area 
to an official station within the United States other than the one you 
left when you transferred out of the United States, as specified in 
Sec. 302-11.2(b).


Sec. 302-11.6  For which expenses will I be reimbursed if I qualify for 
a residence transaction expense allowance?

    If you qualify for a residence transaction expense allowance, you 
may be reimbursed for the:
    (a) Expenses of selling your old residence and purchasing a new 
residence in the United States; or
    (b) Settlement of an unexpired lease at your old official station 
in the United States from which transferred to another official station 
in the United States or when assigned to a foreign post of duty; and
    (c) Expenses of purchasing a new residence in the United States 
upon return to the United States upon completion of the foreign tour of 
duty and the return is to a different official station, and is 50 miles 
distance from the official station which you transferred from.


Sec. 302-11.7  When are expenses for my settlement of an unexpired 
lease reimbursable?

    When your unexpired lease (including month to month) is for 
residence quarters at your old official station, you may be reimbursed 
for settlement expenses for an unexpired lease, including but not 
limited to broker's fees for obtaining a sublease or charges for 
advertising if:
    (a) Applicable laws or the terms of the lease provide for payment 
of settlement expenses; or
    (b) Such expenses cannot be avoided by sublease or other 
arrangement; or
    (c) You have not contributed to the expenses by failing to give 
appropriate lease termination notice promptly after you have definite 
knowledge of your transfer; or
    (d) The broker's fees or advertising charges are not in excess of 
those customarily charged for comparable services in that locality.


Sec. 302-11.8  Must I sell a residence at the old official station to 
be eligible to purchase a residence at the new official station?

    No, you do not have to sell the residence at your old official 
station to be eligible for residence purchase transactions at your new 
official station.

Time Limitations


Sec. 302-11.21  How long do I have to submit my claim for reimbursement 
of expenses incurred in connection with my residence transactions?

    Your claim for reimbursement should be submitted to your agency as 
soon as possible after the transaction occurred. However, the 
settlement dates for the sale and purchase or lease termination 
transactions for which reimbursement is requested must occur not later 
than 2 years after the day you report for duty at your new official 
station. (See Sec. 302-11.23.)


Sec. 302-11.22  May the 2-year time limitation be extended by my 
agency?

    Yes, your agency may extend the 2-year limitation for up to two 
additional years for reason beyond your control and acceptable to the 
agency.


Sec. 302-11.23  When must I request to have my initial time period 
extended?

    To have your initial time period extended, you must submit a 
request to your agency not later than 30 calendar days after the 
expiration date unless this

[[Page 58234]]

30-day period is specifically extended by your agency.

Subpart B--Title Requirements


Sec. 302-11.100  For which residence may I receive reimbursement for 
under this subpart?

    You may receive reimbursement for the one residence from which you 
regularly commute to and from work on a daily basis and which was your 
residence at the time you were officially notified by competent 
authority to transfer to a new official station.


Sec. 302-11.101  Must the title to the property for which I am 
requesting an allowance for residence transactions be in my name?

    The title to the property for which you are requesting an allowance 
for residence transaction must be:
    (a) Solely in your name; or
    (b) Solely in the name of one or more of your immediate family 
members; or
    (c) Jointly in your name and in the name of one or more of your 
immediate family members.


Sec. 302-11.102  How will the Government determine who holds title to 
my property?

    The Government will determine who holds title to your property 
based on:
    (a) Whose name(s) actually appears on your title document (e.g., 
the deed); or
    (b) Who holds equitable title interest in your property as 
specified in Sec. 302-11.105.


Sec. 302-11.103  How will I be reimbursed if I or a member of my 
immediate family do not hold full title to the property for which I am 
requesting reimbursement?

    If you or a member of your immediate family do not hold full title 
to the property for which you are requesting reimbursement, you will be 
reimbursed on a pro rata basis to the extent of your actual title 
interest plus your equitable title interest in the residence.


Sec. 302-11.104  When must I and/or a member(s) of my immediate family 
have acquired title interest in my residence to be eligible for the 
allowance for expenses incurred in connection with the sale of my 
residence?

    To be eligible for the allowance for expenses incurred in 
connection with the sale of your residence, you and/or a member(s) of 
your immediate family must have acquired title or equitable title 
interest in the residence as illustrated in the following table:

------------------------------------------------------------------------
             Type of transfer                           Date
------------------------------------------------------------------------
1. Between official stations in the United  1. Prior to the date
 States.                                     notified of the transfer.
2. Returning from completion of an foreign  2. Prior to the date
 tour of duty to a different official        notified that you would be
 station in the United States, which is 50   transferred to a different
 miles distance from the official station    location in the United
 from which transferred to the foreign       States, which is 50 miles
 official station.                           distance from the official
                                             station you transferred
                                             from the foreign area.
------------------------------------------------------------------------

Sec. 302-11.105  How is it determined if I hold ``equitable title 
interest'' in my residence?

    ``Equitable title interest'' in your residence is determined by 
your agency if:
    (a) The title is held in trust, and:
    (1) The property is your residence;
    (2) You and/or a member(s) of your immediate family are the only 
beneficiary(ies) of the trust during either of your lifetimes;
    (3) You and/or a member(s) of your immediate family retain the 
right to distribute the property during your lifetimes;
    (4) You and/or a member(s) of your immediate family retain the 
right to manage the property;
    (5) You and/or a member(s) of your immediate family are the only 
grantor/settlor of the trust, or retain the right to direct 
distribution of the property upon dissolution of the trust or death; 
and
    (6) You provide your agency with a copy of the trust document; or
    (b) The title is held in the name of a financial institution, and:
    (1) The property is your residence;
    (2) You and/or a member(s) of your immediate family executed a 
financing agreement (e.g., mortgage) with the financial institution;
    (3) State or local law requires that lending parties take title to 
perfect (i.e., protect) a security interest in the property, or the 
financial institution requires that it take possession of title as a 
condition of the financing agreement; and
    (4)You provide your agency with a copy of the financing document; 
or
    (c) The title is held both in the names of:
    (1) You solely, or jointly with one or more members of your 
immediate family, or one or more members of your immediate family;
    (2) An individual accommodation party as defined in Sec. 302-11.106 
who is not a member of your immediate family; and
    (3) The conditions apply:
    (i) The property is your residence.
    (ii) You and/or a member(s) of your immediate family have the right 
to use the property and to direct conveyance of the property.
    (iii) The lender requires signature of the accommodation party on 
the financing document.
    (iv) You and/or a member of your immediate family, are liable for 
payments under the financing arrangement (e.g., mortgage).
    (v) The accommodation party's name is on the title.
    (vi) The accommodation party does not have a financial interest in 
the property unless the employee and/or a members(s) of the immediate 
family default on the financing arrangement.
    (vii) You must provide documentation of the accommodation that is 
acceptable by your agency; or
    (d) The title is held by the seller of the property and the 
following conditions are met:
    (1) The property is your residence;
    (2) You and/or member(s) of your immediate family has the right to 
use the property and to direct conveyance of the property;
    (3) You and/or member(s) of your immediate family must have signed 
a financing agreement with the seller of the property (e.g., a land 
contract) providing for fixed periodic payments and transfer of title 
to the employee and/or a member(s) of the immediate family upon 
completion of the payment schedule; and
    (4) You provide your agency with a copy of the financing agreement; 
or
    (e) Another equitable title situation exists where title is held in 
your name only or jointly with you and one or more members of your 
immediate family or with you and an individual who is not an immediate 
family member, and the following conditions are met:
    (1) The property is your residence.
    (2) You and/or a member(s) of your immediate family has the right 
to use the property and to direct conveyance of the property.
    (3) Only you and/or a member(s) of your immediate family has made 
payments on the property.
    (4) You and/or a member(s) of your immediate family received all 
proceeds from the sale of the property.
    (5) You must provide suitable documentation to your agency that all 
conditions in paragraphs (e)(1) through (e)(4) of this section are met.


Sec. 302-11.106  What is an accommodation party?

    An accommodation party is an individual who signs an employee's 
financing agreement (e.g., a mortgage) to lend his/her name (i.e., 
credit) to the arrangement.

[[Page 58235]]

Subpart C--Reimbursable Expenses


Sec. 302-11.200  What residence transaction expenses will my agency 
pay?

    Provided that they are customarily paid by the seller of a 
residence at the old official station or by the purchaser of a 
residence at the new official station, your agency will pay the 
following expenses:
    (a) Your broker's fee or real estate commission that you pay in the 
sale of your residence at the last official station, not to exceed the 
rates that are generally charged in the locality of your old official 
station;
    (b) The customary cost for an appraisal;
    (c) The costs of newspaper, bulletin board, multiple-listing 
services, and other advertising for sale of the residence at your old 
official station that is not included in the broker's fee or the real 
estate agent's commission;
    (d) The cost of a title insurance policy, costs of preparing 
conveyances, other instruments, and contracts and related notary fees 
and recording fees; cost of making surveys, preparing drawings or plats 
when required for legal or financing purposes; and similar expenses 
incurred for selling your residence to the extent such costs:
    (1) Have not been included in other residence transaction fees 
(i.e., brokers' fees or real estate agent fees);
    (2) Do not exceed the charges, for such expenses, that are normally 
charged in the locality of your residence;
    (3) Are usually furnished by the seller;
    (e) The costs of searching title, preparing abstracts, and the 
legal fees for a title opinion to the extent such costs:
    (1) Have not been included in other related transaction costs 
(i.e., broker's fees or real estate agency fees); and
    (2) Do not exceed the charges, for such expenses, that are 
customarily charged in the locality of your residence
    (f) The following ``other'' miscellaneous expenses in connection 
with the sale and/or purchase of your residence, provided they are 
normally paid by the seller or the purchaser in the locality of the 
residence, to the extent that they do not exceed specifically stated 
limitations, or if not specifically stated, the amounts customarily 
paid in the locality of the residence:
    (1) FHA or VA fees for the loan application;
    (2) Loan origination fees and similar charges such as loan 
assumption fees, loan transfer fees or other similar charges not to 
exceed 1 percent of the loan amount without itemization of the lender's 
administrative charges (unless requirements in Sec. 302-11.201 are 
met), if the charges are assessed in lieu of a loan origination fee and 
reflects charges for services similar to those covered by a loan 
origination fee;
    (3) Cost of preparing credit reports;
    (4) Mortgage and transfer taxes;
    (5) State revenue stamps;
    (6) Other fees and charges similar in nature to those listed in 
paragraphs (f)(1) through (f)(5) of this section, unless specifically 
prohibited in Sec. 302-11.202;
    (7) Charge for prepayment of a mortgage or other security 
instrument in connection with the sale of the residence at the old 
official station to the extent the terms in the mortgage or other 
security instrument provide for this charge. This prepayment penalty is 
also reimbursable when the mortgage or other security instrument does 
not specifically provide for prepayment, provided this penalty is 
customarily charged by the lender, but in that case the reimbursement 
may not exceed 3 months' interest on the loan balance;
    (8) Mortgage title insurance policy, paid by you, on a residence 
you purchased for the protection of, and required by, the lender;
    (9) Owner's title insurance policy, provided it is a prerequisite 
to financing or the transfer of the property; or if the cost of the 
owner's title insurance policy is inseparable from the cost of other 
insurance which is a prerequisite;
    (10) Expenses in connection with construction of a residence, which 
are comparable to expenses that are reimbursable in connection with the 
purchase of an existing residence;
    (11) Expenses in connection with environmental testing and property 
inspection fees when required by Federal, State, or local law; or by 
the lender as a precondition to sale or purchase; and
    (12) Other expenses of sale and purchase made for required services 
that are customarily paid by the seller of a residence at the old 
official station or if customarily paid by the purchaser of a residence 
at the new official station.


Sec. 302-11.201  When may my reimbursement for loan assumption fees or 
other similar fees exceed the 1 percent as specified in Sec. 302-
11.200(f)(2)?

    Reimbursement may exceed 1 percent (as specified in Sec. 302-
11.200(f)(2) only when you provide evidence that the higher rate:
    (a) Does not include prepaid interest, points, or a mortgage 
discount; and
    (b) Is customarily charged in the locality where the residence is 
located.


Sec. 302-11.202  What residence transaction expenses will my agency not 
pay?

    Your agency will not pay:
    (a) Any fees that have been inflated or are higher than normally 
imposed for similar services in the locality;
    (b) Broker fees or commissions paid in connection with the purchase 
of a home at the new official station;
    (c) Owner's title insurance policy, ``record title'' insurance 
policy, mortgage insurance or insurance against loss or damage of 
property and optional insurance paid for by you in connection with the 
purchase of a residence for your protection;
    (d) Interest on loans, points, and mortgage discounts;
    (e) Property taxes;
    (f) Operating or maintenance costs;
    (g) Any fee, cost, charge, or expense determined to be part of the 
finance charge under the Truth in Lending Act, Title I, Pub. L. 90-321, 
as amended, and Regulation Z issued by the Board of Governors of the 
Federal Reserve System (12 CFR part 226), unless specifically 
authorized in Sec. 302-11.200;
    (h) Expenses that result from construction of a residence, except 
as provided in Sec. 302-11.200(e)(10); and
    (i) Losses, see Sec. 302-11.304.

Subpart D--Request For Reimbursement


Sec. 302-11.300  Is there a limit on how much my agency will reimburse 
me for residence transactions?

    Yes, your agency will reimburse you no more than:
    (a) Ten percent of the actual sales price for the sale of your 
residence at the old official station; and
    (b) Five percent of the actual purchase price of the residence for 
the purchase of a residence at the new official station.


Sec. 302-11.301  How must I request reimbursement for the expenses I 
incur for my residence transactions?

    To request reimbursement for the expenses you incur for your 
residence transaction, you must:
    (a) Send your claim for reimbursement and documentation of expenses 
to your old official station for review and approval unless otherwise 
specified by your agency, and
    (b) Follow your agency's procedures and submit appropriate 
voucher(s) along with any claim applications that your agency may 
require with appropriate documents specified in Sec. 302-11.302.


Sec. 302-11.302  What documentation must I submit to my agency to 
request reimbursement for the sale of a former residence or the 
purchase of a new one?

    To request reimbursement for the sale of a former residence or the 
purchase of

[[Page 58236]]

a new one, you must submit to your agency:
    (a) Copies of your sales agreement when selling a residence;
    (b) Your purchase agreement when a purchasing a residence;
    (c) Property settlement documents;
    (d) Loan closing statements; and
    (e) Invoices or receipts for other bills paid.


Sec. 302-11.303  Will the Government reimburse me for expenses incurred 
in connection with my residence transactions that are paid by someone 
other than me or a member of my immediate family?

    No, the Government will not reimburse you for expenses incurred in 
connection with your residence transactions if they are paid by someone 
other than you or a member of your immediate family.


Sec. 302-11.304  Will my agency reimburse me for losses due to market 
conditions or prices at the old and new official station?

    No, losses incurred due to market conditions or prices at your old 
and new duty station are not reimbursable when incurred by you due to:
    (a) Failure to sell a residence at the old official station at the 
price asked, or at its current appraised value, or at its original 
cost; or
    (b) Failure to buy a dwelling at the new official station at a 
price comparable to the selling price of the residence at the old 
official station; or
    (c) Any losses that are similar in nature to (a) or (b).


Sec. 302-11.305  Will I receive reimbursement for any residence 
transaction expenses incurred prior to being officially notified of my 
transfer?

    No, reimbursement of any residence transaction expenses (or 
settlement of an unexpired lease) that occurs prior to being officially 
notified (generally in the form a change of station travel 
authorization) is prohibited.


Sec. 302-11.306  How can I know if my expenses are reasonable and will 
be reimbursed by the Government?

    You are responsible for the determination of reasonableness for 
your claimed expenses. To determine if your expenses are reasonable, 
you should, in coordination with your agency, contact the local real 
estate association, or, if not available, at least three different 
realtors in the locality in which your expenses will be incurred and 
request:
    (a) The current schedule of closing costs which applies to the area 
in which you are buying or selling;
    (b) Information concerning local custom and practices with respect 
to charging of closing costs which relate to either your sale or 
purchase and whether such costs are customarily paid by the seller or 
purchaser; and
    (c) Information on the local terminology used to describe the costs 
specified in paragraph (b) of this section.


Sec. 302-11.307  May I receive an advance of funds for my residence 
transaction expenses?

    No, you may not receive an advance of funds for your residence 
transaction expenses.


Sec. 302-11.308  How much will I receive for reimbursement when I 
purchase or sell land in excess of what reasonably relates to the 
residence site?

    When you purchase or sell land in excess of what reasonably relates 
to the residence site, your reimbursement will be limited to a pro rata 
reimbursement of the land reasonably related to the residence site.


Sec. 302-11.309  What residence transaction expense are reimbursable if 
an employee violates the terms of his/her service agreement?

    If the employee violates his/her service agreement, no residence 
transaction expenses will be paid, and any amounts paid prior to such 
violation shall be a debt due the United States until they are paid by 
the employee.

Settlement of Unexpired Lease


Sec. 302-11.320  How must I request reimbursement for settlement of an 
unexpired lease?

    To request reimbursement for settlement of an unexpired lease, you 
must itemize expenses (list all expenses separately) on a travel 
voucher and submit the voucher to your agency.


Sec. 302-11.321  How will I be reimbursed when I share a lease with 
someone else?

    When you share a lease with someone else you will be reimbursed on 
a pro rata basis for that portion of the lease that you are responsible 
for.

Subpart E--Agency Responsibilities

    Note to subpart E: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-11.400  What policies and procedures must we establish?

    You must establish internal policies and procedures to implement 
this part.


Sec. 302-11.401  Under what conditions may we authorize or approve a 
residence transaction expense allowance?

    You may authorize or approve a residence transaction expense 
allowance when an employee is performing a permanent change of station 
in the interest of the Government and has signed a service agreement 
(other than a new appointee or an employee assigned under the 
Government Employees Training Act (5 U.S.C. 4109.); and
    (a) The old and new official stations are located in the United 
States; or
    (b) The employee has completed an agreed upon tour of duty overseas 
and is returning to the United States to an official station that is at 
least 50 miles away from the employees last official station in the 
United States; or
    (c) When the employee has been permanently assigned to a temporary 
official station.


Sec. 302-11.402  Who is not eligible to receive residence transaction 
expense allowances?

    The following are not eligible to receive residence transaction 
expense allowances:
    (a) New appointees; and
    (b) Employees assigned under the Government Employee's Training Act 
(5 U.S.C. 4109).


Sec. 302-11.403  What policies must we establish before accepting 
documentation from an employee for reimbursement of residence 
transaction expenses?

    You must establish policies that will define what documentation is 
acceptable from an employee when requesting reimbursement of residence 
transaction expenses.


Sec. 302-11.404  What controls must we establish for paying allowances 
for expenses incurred in connection with residence transactions?

    When paying allowances for expenses incurred in connection with 
residence transactions, you must:
    (a) Determine who will authorize and approve residence transactions 
expenses on the employee's travel authorization;
    (b) Determine who will review applications for reimbursement of 
residence transaction expenses;
    (c) Determine who will authorize extensions beyond the 2-year 
limitation for completing sales and purchase or lease termination 
transactions, under Secs. 302-11-420 and 302-11.421;
    (d) Prescribe a claim application form which meets your internal 
administrative requirements;
    (e) Require employees to submit a travel claim with appropriate 
documentation to support his/her payment of the expenses claimed, which 
must include as a minimum;
    (1) The sales agreement,
    (2) The purchase agreement,
    (3) Property settlement documents,
    (4) Loan closing statements, and

[[Page 58237]]

    (5) Invoices or receipts for other bills paid; and
    (f) Require employees to submit travel claims to his/her old 
official station for review and approval of the claim unless agency 
review and approval functions are performed elsewhere except as 
provided in Sec. 302-11.405.


Sec. 302-11.405  Which agency must review and approve the employee's 
application when the employee transfers between agencies?

    The hiring agency in the locality of the employee's old official 
station must review and approve the employee's application when the 
employee transfers between agencies, unless the hiring agency does not 
have an appropriate installation there. In that case, the losing agency 
at the old official station must review and approve the expenses.


Sec. 302-11.406  How must we administer an employee's claim?

    To administer an employee's claim:
    (a) You must:
    (1) Review the employee's claim to determine whether the expenses 
claimed are reasonable in amount and customarily paid by the buyer/
seller in the locality where the property is located;
    (2) Disallow any portion of the employee's claim that is inflated 
or are higher than normal for similar services in the locality;
    (3) Execute final administrative approval of payment of a claim by 
an appropriate agency approving official; and
    (4) Return disapproved applications to the employee with a 
memorandum of explanation.
    (b) The approving official must determine if:
    (1) The aggregate amount of expenses claimed in connection with a 
sale or purchase of a residence is within the prescribed limitation for 
either;
    (2) All conditions and requirements under which allowances may be 
paid have been met; and
    (3) The expenses themselves are those which are reimbursable.

    Note to Sec. 302-11.406: You must not pay the expenses listed in 
Sec. 302-11.202 or Sec. 302-11.304.

Sec. 302-11.407  What documentation must we require the employee to 
submit before paying residence transaction expenses?

    Before paying residence transaction expenses, you must require the 
employee to submit:
    (a) A copy of his/her financial documents which prove that only the 
employee and or a member(s) of the immediate family made payments on 
the property;
    (b) A copy of his/her financial documents which prove that he/she 
and/or a member(s) of the immediate family received all proceeds from 
the sale of the property;
    (c) Documentation that is acceptable by you in verifying any 
interest that the employee has in the property; and
    (d) Any additional documents that you need to verify payments.

Time Limitations


Sec. 302-11.420  How long can we authorize an extension for completion 
of the sale and purchase or lease termination transactions?

    You may authorize an additional period of time, not to exceed 2 
years, for completion of the sale and purchase or lease termination 
transactions.


Sec. 302-11.421  What must we consider when authorizing an extension of 
time limitation?

    When authorizing an extension of time limitation, you must 
determine that the:
    (a) Employee has extenuating circumstances which have prevented 
him/her from completing his/her sale and purchase or lease termination 
transactions in the initial authorized time frame of two years; and
    (b) Employee's residence transactions are reasonably related to 
his/her transfer of official station.

Unexpired Lease


Sec. 302-11.430  When must we reimburse an employee for expenses 
incurred due to settlement of an unexpired lease?

    You must reimburse an employee in lieu of residence transaction 
expenses when the employee meets the requirements of Sec. 302-11.10 for 
expenses incurred due to settlement of an unexpired lease.


Sec. 302-11.431  How must we require an employee to request 
reimbursement for expenses of an unexpired lease settlement?

    You must require that the employee submit an appropriate travel 
claim requesting reimbursement for expenses of an unexpired lease 
settlement with:
    (a) An itemization of all expenses claimed supported by 
documentation showing that the employee indeed paid all lease 
settlement fees; and
    (b) A total amount for all expenses claimed.

Title Requirements


Sec. 302-11.440  How must we determine who holds title to property for 
reimbursement purposes?

    To determine who holds title to property for reimbursement 
purposes, you must verify:
    (a) Whose name(s) actually appears on the title document (e.g., the 
deed); or
    (b) Who holds equitable title interest in the property.


Sec. 302-11.441  How must we determine if an employee holds equitable 
title interest in his/her property?

    To determine if an employee holds equitable title interest in his/
her property, you must follow the guidelines in Sec. 302-11.405.

Request For Reimbursements


Sec. 302-11.450  May we advance an employee funds for expenses incurred 
in connection with residence transactions?

    No, you may not advance an employee funds for expenses incurred in 
connection with residence transactions.


Sec. 302-11.451  What is the maximum amount that we may reimburse for 
the sale or purchase of an employee's residence?

    The maximum amount that you may reimburse for the sale or purchase 
of an employee's residence is:
    (a) Ten percent of the actual sale price for the sale of the 
employee's residence at the old official station; and
    (b) Five percent of the actual purchase price of the residence for 
the purchase of a residence at the new official station.

PART 302-12--USE OF A RELOCATION SERVICES COMPANY

Subpart A--Employee's Use of a Relocation Services Company
Sec.
302-12.1  Am I eligible to use a relocation services company?
302-12.2  Who determines if I may use a relocation services company?
302-12.3  Under what conditions may I use a relocation services 
company?
302-12.4  For what relocation services expenses will my agency pay?
302-12.5  If I use a contracted-for relocation service that is a 
substitute for reimbursable relocation allowance, will I be 
reimbursed for the relocation allowance as well?
302-12.6  What expenses will my agency pay if I use a relocation 
services company to ship household goods in excess of the maximum 
weight allowance?
302-12.7  What expenses will my agency pay if I use a relocation 
services company to sell or purchase a residence for which I and/or 
a member(s) of my immediate family do not have full title?
302-12.8  If my agency authorizes me to enter a homesale program, 
must I accept a buyout offer from the relocation services company?
302-12.9  What are the income tax consequences if I use a relocation 
services company?

[[Page 58238]]

Subpart B--Agency's Use of a Relocation Services Company
302-12.100  What are ``relocation services''?
302-12.101  May we enter into a contract with a relocation services 
company for the company to provide relocation services?
302-12.102  What contracted relocation services may we provide at 
Government expense?
302-12.103  May we separately contract for each type of relocation 
service?
302-12.104  What is the purpose of contracting for relocation 
services?
302-12.105  How must we administer a relocation services contract?
302-12.106  What policies must we establish when offering our 
employees the services of a relocation services company?
302-12.107  What rules must we follow when contracting for 
relocation services?
302-12.108  What are the income tax consequences that we must 
consider when offering relocation services?
302-12.109  What must we consider in deciding whether to use the 
fixed-fee or cost-reimbursable contracting method?
302-12.110  May we take title to an employee's residence?
302-12.111  Under a homesale program, may we establish a maximum 
home value above which we will not pay for homesale services?
302-12.112  Under a homesale program, may we pay an employee for 
losses he/she incurs on the sale of a residence?
302-12.113  Under a homesale program, may we direct the relocation 
services company to pay an employee more than the fair market value 
of his/her residence?
302-12.114  May we use a relocation services contract for services 
which we are contractually bound to obtain under another travel 
services contract?

    Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).

Subpart A--Employee's Use of a Relocation Services Company

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 302-12.1  Am I eligible to use a relocation services company?

    Yes, if you are an employee who is authorized to transfer and such 
transfer includes residence transaction.


Sec. 302-12.2  Who determines if I may use a relocation services 
company?

    Your agency must determine if you may use a relocation services 
company.


Sec. 302-12.3  Under what conditions may I use a relocation services 
company?

    You may use a relocation services company if you:
    (a) Meet all conditions required for you to be eligible for an 
allowance contained in this chapter for which a service provided by the 
relocation services company would serve as a substitute, and you are 
authorized to use a specific relocation service provided by the company 
as a substitute;
    (b) Have signed a service agreement; and
    (c) Meet any specific conditions your agency has established.


Sec. 302-12.4  For what relocation services expenses will my agency 
pay?

    Your agency will pay the relocation services company's fees/
expenses for the services you are authorized to use. If your agency 
pays the relocation services company for actual expenses the company 
incurs on your behalf, payment to the company is limited to what you 
would have received under the direct reimbursement provisions of this 
chapter.


Sec. 302-12.5  If I use a contracted-for relocation service that is a 
substitute for reimbursable relocation allowance, will I be reimbursed 
for the relocation allowance as well?

    No, if you use a contracted-for relocation service that is a 
substitute for reimbursable relocation allowance, you will not be 
reimbursed for the relocation as well.


Sec. 302-12.6  What expenses will my agency pay if I use a relocation 
services company to ship household goods in excess of the maximum 
weight allowance?

    If you use a relocation services company to ship HHG in excess of 
the maximum weight allowance, your agency will pay the portion of the 
fee attributable to 18,000 pounds net weight. You must pay the rest.


Sec. 302-12.7  What expenses will my agency pay if I use a relocation 
services company to sell or purchase a residence for which I and/or a 
member(s) of my immediate family do not have full title?

    If you use a relocation services company to sell or purchase a 
residence for which you and/or a member(s) of your immediate family do 
not have full title, your agency will pay the portion of the relocation 
services company's fee attributable to your pro rata share of the 
residence, in accordance with Sec. 302-11.103 of this chapter. You must 
pay any portion of the fee attributable to other than your pro rata 
share of the residence.


Sec. 302-12.8  If my agency authorizes me to enter a homesale program, 
must I accept a buyout offer from the relocation services company?

    No, if your agency authorizes you to enter a homesale program, your 
agency must give you the option to accept or reject an offer from the 
relocation services company.


Sec. 302-12.9  What are the income tax consequences if I use a 
relocation services company?

    You may incur income taxes on relocation services provided by a 
relocation services company and paid for by your agency. Section 82 of 
the Internal Revenue Code states there shall be included in gross 
income (as compensation for services) any amount received or accrued, 
directly or indirectly, by an individual as a payment for or 
reimbursement of expenses of moving from one residence to another 
residence which is attributable to employment. You will receive a 
relocation income tax (RIT) allowance if your agency determines that 
such expenses are taxable. The Government does not assume 
responsibility for payment of your taxes, however, and you may wish to 
consult a tax professional on income tax reporting.

Subpart B--Agency's Use of a Relocation Services Company

    Note to subpart B: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-12.100  What are ``relocation services''?

    ``Relocation services'' are services provided by a private company 
under a contract with an agency to assist a transferred employee in 
relocating to the new official station. Examples include homesale 
programs, home marketing assistance, home finding assistance, and 
property management services.


Sec. 302-12.101  May we enter into a contract with a relocation 
services company for the company to provide relocation services?

    Yes, you may enter into a contract with a relocation services 
company for the company to provide relocation services.


Sec. 302-12.102  What contracted relocation services may we provide at 
Government expense?

    You may pay for contracted relocation services that are substitutes 
for reimbursable relocation allowances authorized throughout this 
chapter. For example, you may pay for homesale services as a substitute 
for residence sale expenses, or household goods management services as 
a substitute for transportation of household goods.


Sec. 302-12.103  May we separately contract for each type of relocation 
service?

    Yes, you may separately contract for each type of relocation 
service or you

[[Page 58239]]

may combine several types of relocation services in a single contract.


Sec. 302-12.104  What is the purpose of contracting for relocation 
services?

    The purpose of contracting for relocation services is to improve 
the treatment of employees who are directed to relocate to facilitate 
the retention of a well-qualified workforce.


Sec. 302-12.105  How must we administer a relocation services contract?

    You must balance the positive effects that availability of 
relocation services has on employee mobility and morale with any 
increased costs your agency may experience as a result of providing 
relocation services.


Sec. 302-12.106  What policies must we establish when offering our 
employees the services of a relocation services company?

    When offering your employees the services of a relocation services 
company, you must establish policies governing:
    (a) The conditions under which you will authorize an employee to 
use a relocation services company;
    (b) Which employees you will allow to use a relocation services 
company;
    (c) What relocation services you will offer an employee; and
    (d) Who will determine in each case if an employee may use a 
relocation services company and what services will be offered.


Sec. 302-12.107  What rules must we follow when contracting for 
relocation services?

    You must follow the rules contained in the Federal Acquisition 
Regulations (FAR) (48 CFR) and/or other procurement regulations 
applicable to your agency.


Sec. 302-12.108  What are the income tax consequences that we must 
consider when offering relocation services?

    Amounts you pay to a relocation services company on behalf of an 
employee may be taxable to the employee. In some cases, such as certain 
homesale programs, the amounts may not be taxable. You must determine 
the taxability of such payments, and pay a relocation income tax (RIT) 
allowance in accordance with part 302-17 of this chapter on payments 
you determine to be taxable to the employee. You may contact the: 
Assistant Chief Counsel (Income Tax & Accounting), Internal Revenue 
Service, 1111 Constitution Avenue, NW., Room 5501, Washington, DC 
20224, for information on the income tax consequences of payments you 
make to a relocation services company.


Sec. 302-12.109  What must we consider in deciding whether to use the 
fixed-fee or cost-reimbursable contracting method?

    You must consider the following factors in deciding whether to use 
the fixed-fee or cost-reimbursable contracting method:
    (a) Risk of alternative methods. Under a fixed fee contract, the 
relocation services company bears all risks not expressly contained in 
the contract. Under a cost-reimbursable contract, you must assume some 
or all risks and, therefore, must assume some management 
responsibilities under the contract as well. For example, under a fixed 
fee homesale program you are not directly liable for losses incurred if 
a residence does not sell immediately, while under a cost-reimbursable 
homesale program you assume some or all risks of selling the residence.
    (b) Cost of alternative methods. Under the fixed fee method of 
contracting, the fee includes a cost component for risks assumed by the 
relocation services company. Under the cost-reimbursable method of 
contracting, you are directly responsible for some or all of the costs 
associated with management of the contract. In deciding whether to use 
cost-reimbursable contracting you, therefore, must consider the cost of 
resources you would require (including personnel costs) to manage a 
cost-reimbursable relocation services contract.
    (c) Effect on the obligation of funds. You must obligate funds for 
a relocation in the fiscal year in which the purchase order is awarded 
under the contract. Under the fixed fee contracting method, the amount 
of the relocation services fee is fixed and you have a basis for 
determining the amount of funds to obligate. Under the cost-
reimbursable contracting method, you must obligate funds based on an 
estimate of the costs that will be incurred. When opting for cost-
reimbursable contracting you, therefore, should establish a reliable 
method of computing fund obligation estimates.


Sec. 302-12.110  May we take title to an employee's residence?

    No, you may not take title to an employee's residence except as 
specifically provided by statute. The statutes which form the basis for 
the provisions of this part do not provide such authority.


Sec. 302-12.111  Under a homesale program, may we establish a maximum 
home value above which we will not pay for homesale services?

    Yes, if a home exceeding the maximum value above which you will not 
pay is sold under your homesale program, the employee will be 
responsible for any additional costs. You must establish a maximum 
amount commensurate with your agency's experience. You may consider, 
among other factors, budgetary constraints, the value range of homes in 
areas where you have offices, and the value range of homes previously 
entered in your program.


Sec. 302-12.112  Under a homesale program, may we pay an employee for 
losses he/she incurs on the sale of a residence?

    No, under a home sale program, you may not pay an employee for 
losses he/she incurs on the sale of a residence, but this does not 
preclude you reimbursing a relocation service's company for losses 
incurred while the contractor holds the property.


Sec. 302-12.113  Under a homesale program, may we direct the relocation 
services company to pay an employee more than the fair market value of 
his/her residence?

    No, under a homesale program, you may not direct the relocation 
services company to pay an employee more than the fair market value (as 
determined by the residence appraisal process) of his/her home.


Sec. 302-12.114  May we use a relocation services contract for services 
which we are contractually bound to obtain under another travel 
services contract?

    No, you may not use a relocation services contract to which you are 
contractually bound to obtain the services of another relocation 
service provider or to circumvent the travel and transportation expense 
payment system contract if you are a user of that contract.

PART 302-14--HOME MARKETING INCENTIVE PAYMENTS

Subpart A--Payment of Incentive to the Employee
Sec.
302-14.1  What is a ``homesale program?
302-14.2  What is the purpose of a home marketing incentive payment?
302-14.3  Am I eligible to receive a home marketing incentive 
payment?
302-14.4  Must my agency pay me a home marketing incentive?
302-14.5  Under what circumstances will I receive a home marketing 
incentive payment?
302-14.6  How much may my agency pay me for a home marketing 
incentive?
302-14.7  Are there tax consequences when I receive a home marketing 
incentive payment?
Subpart B--Agency Responsibilities
302-14.100  How should we administer our home marketing incentive 
program?

[[Page 58240]]

302-14.101  What policies must we establish to govern our home 
marketing incentive payment program?
302-14.102  What factors should we consider in determining whether 
to establish a home marketing incentive payment program?
302-14.103  What factors should we consider in determining the 
amount of a home marketing incentive payment?

    Authority: 5 U.S.C. 5756.

Subpart A--Payment of Incentive to the Employee

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 302-14.1  What is a ``homesale program'?

    A ``homesale program'' is a program offered by an agency through a 
contractual arrangement with a relocation services company. The 
relocation services company purchases a transferred employee's 
residence at fair market (appraised) value and then independently 
markets and sells the residence.


Sec. 302-14.2  What is the purpose of a home marketing incentive 
payment?

    The purpose of a home marketing incentive payment is to reduce the 
Government's relocation costs by encouraging transferred employees to 
participate in their employing agency's homesale program to 
independently and aggressively market, and find a bona fide buyer for 
their residence. This significantly reduces the fees/expenses their 
agencies must pay to relocation services companies and effectively 
lowers the cost of such programs.


Sec. 302-14.3  Am I eligible to receive a home marketing incentive 
payment?

    Yes, you are eligible to receive a home marketing incentive payment 
if you are an employee who is authorized to transfer and you otherwise 
meet requirements for sale of your residence at Government expense.


Sec. 302-14.4  Must my agency pay me a home marketing incentive?

    No, your agency determines when it is in the Government's interest 
to offer you a home marketing incentive.


Sec. 302-14.5  Under what circumstances will I receive a home marketing 
incentive payment?

    You will receive a home marketing incentive payment when:
    (a) You enter your residence in your agency's homesale program;
    (b) You independently and aggressively market your residence;
    (c) You find a bona fide buyer for your residence as a result of 
your independent marketing efforts;
    (d) You transfer the residence to the relocation services company;
    (e) Your agency pays a reduced fee/expenses to the relocation 
services company as a result of your independent marketing efforts;
    (f) You meet any additional conditions your agency has established, 
including but not limited to, mandatory marketing periods, list price 
guidelines, closing requirements, and residence value caps; and
    (g) Your agency has established a home marketing incentive program.


Sec. 302-14.6  How much may my agency pay me for a home marketing 
incentive?

    Your agency will determine the amount of your home marketing 
incentive payment. The incentive payment, however, may not exceed the 
lesser of:
    (a) Five percent of the price the relocation services company paid 
when it purchased the residence from you; or
    (b) The savings your agency realized from the reduced fee/expenses 
it paid as a result of you finding a bona fide buyer.


Sec. 302-14.7  Are there tax consequences when I receive a home 
marketing incentive payment?

    Yes, the home marketing incentive payment is considered income. 
Consequently, you will be taxed, and your agency will withhold income 
and employment taxes, on the home marketing incentive payment. You will 
not, however, receive a withholding tax allowance (WTA) to offset the 
withholding on your home marketing incentive payment, nor will you 
receive a relocation income tax (RIT) allowance payment for 
substantially all of your Federal, state and local income taxes on the 
incentive payment.

Subpart B--Agency Responsibilities

    Note to subpart B: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-14.100  How should we administer our home marketing incentive 
payment program?

    Your goal in using an incentive payment program is to reduce your 
overall relocation costs. You must not make a home marketing incentive 
payment that exceeds the savings you realize from the reduced fees/
expenses you pay the relocation services company.


Sec. 302-14.101  What policies must we establish to govern our home 
marketing incentive payment program?

    You must establish policies to govern:
    (a) The conditions under which you will authorize a home marketing 
incentive payment for an employee;
    (b) The amount of the home marketing incentive payment(s) you will 
offer (or) the method you will use to compute your home marketing 
incentive payments); and
    (c) Who will determine in each case whether a home marketing 
incentive payment is authorized.


Sec. 302-14.102  What factors should we consider in determining whether 
to establish a home marketing incentive payment program?

    In determining whether to establish a home marketing incentive 
payment program, you should consider:
    (a) Whether the program will increase the percentage of residences 
sold for which employees find a bona fide buyer. You should establish a 
benchmark for the percentage of residences for which you expect 
employees to find a bona fide buyer resulting in lower homesale costs 
to you. If your historical percentage of employee-generated sales is 
below your benchmark, a home marketing incentive payment program may 
benefit you; and
    (b) The expected net savings from a home marketing incentive 
payment program.


Sec. 302-14.103  What factors should we consider in determining the 
amount of a home marketing incentive payment?

    In determining the amount of a home marketing incentive payment, 
you should consider the:
    (a) Amount of savings from reduced fee/expenses paid to the 
relocation services company. The home marketing incentive payment 
program is intended to reduce your relocation costs. The amount of each 
home marketing incentive payment you make, therefore, must not exceed 
the savings you realize from the reduced fee you pay to the relocation 
services company; and
    (b) Employee's efforts in marketing the residence. The purpose of a 
home marketing incentive payment program is to encourage a transferred 
employee who participates in a homesale program to independently and 
aggressively market his/her residence and find a bona fide buyer.

PART 302-15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES

Subpart A--General Rules for the Employee

Sec.

[[Page 58241]]

302-15.1   What are property management services?
302-15.2   What are the purposes of the allowance for property 
management services?
302-15.3   Am I eligible for payment for property management 
services under this part?
302-15.4   Who is not eligible for payment for property management 
services?
302-15.5   Is my agency required to authorize payment for property 
management services?
302-15.6   Under what circumstances may my agency authorize payment 
under this part?
302-15.7   For what property may my agency authorize payment under 
this part?
302-15.8   When my agency authorizes payment for me under this part, 
am I obligated to use such services, or may I elect instead to sell 
my residence at Government expense?
302-15.9   Must I repay property management expenses my agency paid 
under this part if I elect to sell my former residence in the United 
States at Government expense when I am transferred from my current 
foreign post of duty to an official station in the United States 
other than the one I left?
302-15.10   How long may my agency pay under this part?
302-15.11   If my agency authorized, and I elected to receive, 
payment for property management expenses, may I later elect to sell 
my residence at Government expense?
302-15.12   If my agency is paying for property management services 
under this part and my service agreement expires, what must I do to 
ensure that payment for property management services continues?
302-15.13   What are the income tax consequences when my agency pays 
for my property management services?

Subpart B--Agency Responsibilities

302-15.70  What governing policies must we establish for the 
allowance for property management services?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--General Rules For The Employee

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 302-15.1  What are property management services?

    ``Property management services'' are programs provided by private 
companies for a fee, which help an employee to manage his/her residence 
at the old official station as a rental property. These services 
typically include, but are not limited to, obtaining a tenant, 
negotiating the lease, inspecting the property regularly, managing 
repairs and maintenance, enforcing lease terms, collecting the rent, 
paying the mortgage and other carrying expenses from rental proceeds 
and/or funds of the employee, and accounting for the transactions and 
providing periodic reports to the employee.


Sec. 302-15.2  What are the purposes of the allowance for property 
management services?

    The purpose of the allowance for property management services is 
reduce overall Government relocation costs when used instead of sale of 
the employee's residence at Government expense. When authorized in 
connection with an employee's transfer to a foreign area post of duty, 
relieve the employee of the costs of maintaining a home in the United 
States while stationed at a foreign area post of duty.


Sec. 302-15.3  Am I eligible for payment for property management 
services under this part?

    Yes, you are eligbile for payment for property management services 
when:
    (a) You transfer in the interest of the Government; and
    (b) You and/or a member(s) of your immediate family hold(s) title 
to a residence which you are eligible to sell at Government expense 
under part 302-11 or part 302-12 of this chapter.


Sec. 302-15.4  Who is not eligible for payment for property management 
services?

    New appointees, employees assigned under the Government Employees 
Training Act (5 U.S.C. 4109), and employees transferring wholly outside 
the United States are not eligible for payment for property management 
services. However, relocations wholly outside the United States do not 
affect previously authorized property management services as long as 
the employee continues to meet the requirements of Sec. 302-15.6 and 
any other conditions established by the agency.


Sec. 302-15.5  Is my agency required to authorize payment for property 
management services?

    No, your agency is not required to authorize payment for property 
management services. However, your agency determines:
    (a) When you meet the conditions set forth in Sec. 302-15.3;
    (b) When to authorize payment for these services; and
    (c) What procedures you must follow when it authorizes such 
payment.


Sec. 302-15.6  Under what circumstances may my agency authorize payment 
under this part?

    (a) For a relocation to an official station in the United States, 
your agency may authorize payment under this part when:
    (1) You are being returned from a foreign area post of duty to a 
different official station than the one from which you were transferred 
for your foreign tour of duty;
    (2) Your agency has determined that property management services is 
more advantageous and cost effective for the Government than having to 
sell your residence;
    (3) You have signed a service agreements; and
    (4) You meet any additional conditions that your agency has 
established.
    (b) For relocations to official stations outside the United States, 
your agency will authorize payment under this part when you meet 
conditions set forth in paragraphs (a)(3) and (4) of this section.


Sec. 302-15.7  For what property may my agency authorize payment under 
this part?

    Under this part, payment may be authorized only for your residence 
at the last official station in the United States from which you 
transferred.


Sec. 302-15.8  When my agency authorizes payment for me under this 
part, am I obligated to use such services, or may I elect instead to 
sell my residence at Government expense?

    You are not obligated to use your authorized property management 
services allowance. You have the option of choosing to sell your 
residence at Government expense or to use the property management 
services allowance.


Sec. 302-15.9  Must I repay property management expenses my agency paid 
under this part if I elect to sell my former residence in the United 
States at Government expense when I am transferred from my current 
foreign post of duty to an official station in the United States other 
than the one I left?

    No, you are not required to repay any property management expenses 
paid by your agency if you elect to sell your former residence in the 
United States when transferred from your post of duty to an official 
station in the United States. The authority for your agency to pay for 
property management services under this part when you are transferred 
to a foreign post of duty arises from your transfer to the foreign post 
of duty. It is separate from, and in addition to, the authority to sell 
your residence at Government expense when you are transferred to an 
official station in the

[[Page 58242]]

United States other than the official station from which you were 
transferred to the foreign post of duty.


Sec. 302-15.10  How long may my agency pay under this part?

    Your agency may pay:
    (a) For transfers within the United States for a period not to 
exceed 2 years from your effective date of transfer, with up to a 2-
year extension, under the same conditions required in Sec. 302-11.21 of 
this chapter; or
    (b) From the time you transfer to a foreign area post of duty until 
you:
    (1) Transfer back to an official station in the United States; or
    (2) Complete a service agreement at your post of duty and remain 
there, but do not sign a new service agreement; or
    (3) Separate from Government service.


Sec. 302-15.11  If my agency authorized, and I elected to receive, 
payment for property management expenses, may I later elect to sell my 
residence at Government expense?

    Yes, you may change your selection from receiving property 
management expenses to selling your residence at Government expense 
provided:
    (a) Your agency allows you to change your election of payment from 
property management expenses to the sale of your residence at 
Government expense; and
    (b) Payment for sale of your residence at Government expense is 
offset in accordance with your agency's policy established under 
Sec. 302-15.70(d).


Sec. 302-15.12  If my agency is paying for property management services 
under this part, and my service agreement expires, what must I do to 
ensure that payment for property management services continues?

    You must sign a new service agreement (see Sec. 302-2.13 of this 
chapter) to continue to this benefit.


Sec. 302-15.13  What are the income tax consequences when my agency 
pays for my property management services?

    When your agency pays for your property management services, you 
will be taxed on the amount of expenses your agency pays for property 
management services whether it reimburses you directly or whether it 
pays a relocation service company to manage your residence. Your agency 
must pay you a relocation income tax (RIT) allowance for the additional 
Federal, State and local income taxes you incur on property management 
expenses it reimburses you or pays on your behalf.

    Note to Sec. 302-15.13: You may wish to consult with a tax 
advisor to determine whether you will incur any additional tax 
liability, unrelated to your agency's payment of your property 
management expenses, as a result of maintaining your residence as a 
rental property.

Subpart B--Agency Responsibilities

    Note to subpart B: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-15.70  What governing policies must we establish for the 
allowance for property management services?

    You must establish policies and procedures governing:
    (a) When you will authorize payment for property management 
services for an employee who transfers in the interest of the 
Government;
    (b) Who will determine, for relocations to official stations in the 
United States, whether payment for property management services is more 
advantageous and cost effective than sale of an employee's residence at 
Government expense;
    (c) If and when you will allow an employee who was offered and 
accepted payment for property management services to change his/her 
mind and elect instead to sell his/her residence at Government expense 
in accordance with paragraph (d) of this section; and
    (d) How you will offset expenses you have paid for property 
management services against payable expenses for sale of the employee's 
residence when an eligible employee who elected payment for property 
management services later changes his/her mind and elects instead to 
sell his/her residence at Government expense.

SUBCHAPTER F--MISCELLANEOUS ALLOWANCES

PART 302-16--ALLOWANCE FOR MISCELLANEOUS EXPENSES

Subpart A--General
Sec.
302-16.1   What are miscellaneous expenses?
302-16.2   What is the purpose of the miscellaneous expenses 
allowance (MEA)?
302-16.3   Who is and is not eligible for a MEA?
302-16.4   Must my agency authorize payment of a MEA?
Subpart B--Employee's Allowance for Miscellaneous Expenses
302-16.100   How will I receive the MEA?
302-16.101   May I receive an advance of funds for MEA?
302-16.102   What amount may my agency reimburse me for 
miscellaneous expenses?
302-16.103   May I claim an amount in excess of that prescribed in 
Sec. 302-16.102?
302-16.104   Must I document my miscellaneous expenses to receive 
reimbursement?
302-16.105   What standard of care must I use in incurring 
miscellaneous expenses?
Subpart C--Agency Responsibilities
302-16.200   What governing policies must we establish for MEA?
302-16.201   How should we administer the authorization and payment 
of miscellaneous expenses?
302-16.202   Are there any restrictions to the types of costs we may 
cover?
302-16.203   What are examples of types of costs not covered by the 
MEA?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--General

    Note to subpart A: Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec. 302-16.1  What are miscellaneous expenses?

    (a) Miscellaneous expenses are costs associated with:
    (1) Discontinuing your residence at your old official station, and/
or
    (2) Establishing a residence at your new official station.
    (b) Expenses allowable under paragraphs(a)(1) or (a)(2) of this 
section include, but are not limited to the following:

------------------------------------------------------------------------
       General expenses              Fees/deposits           Losses
------------------------------------------------------------------------
Appliances....................  For disconnecting/
                                 connecting
                                 appliances,
                                 equipment, utilities
                                 (except for mobile
                                 homes see Sec.  302-
                                 10.20), conversion of
                                 appliances for
                                 operation on
                                 available utilities.
Rugs, draperies, and curtains.  For cutting and
                                 fitting such items,
                                 moved from one
                                 residence quarters to
                                 another.
Utilities (See Sec.  302-10.20  Deposits or fees not
 for mobile homes).              offset by eventual
                                 refunds.

[[Page 58243]]

 
Medical, dental, and food       ......................  Forfeiture
 locker contracts.                                       losses not
                                                         transferable or
                                                         refundable.
Private Institutional care      ......................  Forfeiture
 contracts (such as that                                 losses not
 provided for handicapped or                             transferable or
 invalid dependents only).                               refundable.
Privately-owned automobiles...  Registration, Driver's
                                 license, and use
                                 taxes imposed when
                                 bringing into certain
                                 jurisdictions.
Transportations of pets.......  Only costs associated
                                 with dogs and cats
                                 are included. Other
                                 animals (horses,
                                 fish, birds, various
                                 rodents, etc.) are
                                 excluded because of
                                 their size, exotic
                                 nature, or
                                 restrictions on
                                 shipping, host
                                 country restrictions
                                 and special handling
                                 difficulties. Costs
                                 are limited to
                                 transportation and
                                 handling costs,
                                 required to meet the
                                 more stringent rules
                                 of air carriers, not
                                 included are
                                 inoculations,
                                 examinations,
                                 boarding quarantine
                                 or other costs in the
                                 moving process.
------------------------------------------------------------------------

Sec. 302-16.2  What is the purpose of the miscellaneous expenses 
allowance (MEA)?

    The miscellaneous expenses allowance (MEA) is to help defray some 
of the costs incurred due to relocating. The MEA is related to expenses 
that are common to living quarters, furnishings, household appliances, 
and to other general types of costs inherent in relocation of a place 
of residence. (See part 302-10 of this chapter for specific costs 
normally associated with relocation of a mobile home dwelling that are 
covered under transportation expenses.)


Sec. 302-16.3  Who is and is not eligible for a MEA?

    See the following table for eligibility of MEA:

------------------------------------------------------------------------
                                             Employees not eligible for
        Employees eligible for MEA                       MEA
------------------------------------------------------------------------
(a) Your agency authorized/approved a       (a) A new appointee.
 relocation or a TCS; and.
(b) You discontinued and established a      (b) Authorized SES ``last
 residence in connection with your           move home'' benefits,
 relocation or TCS; and.
(c) You meet the applicable eligibility     (c) Assigned under the
 conditions in part 302-1 of this chapter;   Government Employees
 and.                                        Training Act (5 U.S.C.
                                             4109), or
(d) You signed the required service         (d) Returning from an
 agreement in part 302-1 of this chapter.    overseas assignment for
                                             separation from Government
                                             service.
------------------------------------------------------------------------

Sec. 302-16.4  Must my agency authorize payment of a MEA?

    Yes, if you meet the applicable eligibility conditions in Sec. 302-
16.3, your agency must authorize payment of a MEA.

Subpart B--Employee's Allowance for Miscellaneous Expenses


Sec. 302-16.100  How will I receive the MEA?

    You will be reimbursed your MEA in accordance with your agency's 
internal travel policy.


Sec. 302-16.101  May I receive an advance of funds for MEA?

    No, your agency must not authorize an advance of funds for MEA.


Sec. 302-16.102  What amount may my agency reimburse me for 
miscellaneous expenses?

    The following amounts will be paid for miscellaneous expenses 
without support or documentation of expenses:
    (a) Either $500 or the equivalent of one week's basic gross pay, 
whichever is the lesser amount, if you have no immediate family 
relocating with you; or
    (b) $1,000 or the equivalent of two weeks' basic gross pay, 
whichever is the lesser amount, if you have immediate family members 
relocating with you.


Sec. 302-16.103  May I claim an amount in excess of that prescribed in 
Sec. 302-16.102?

    Yes, you may claim an amount in excess of that prescribed in 
Sec. 302-16.12 if authorized by your agency; and
    (a) Supported by acceptable statements of fact, paid bills or other 
acceptable evidence justifying the amounts claimed; and
    (b) The aggregate amount does not exceed your basic gross pay (at 
the time you reported for duty, at your new official station) for:
    (1) One week if you are relocating without an immediate family; or
    (2) Two weeks if you are relocating with an immediate family.

    Note to Sec. 302-16.103: The amount authorized cannot exceed the 
maximum rate of grade GS-13 provided in 5 U.S.C. 5332 at the time 
you reported for duty at your new official station.

Sec. 302-16.104  Must I document my miscellaneous expenses to receive 
reimbursement?

    You must show documentation of your miscellaneous expenses only 
when an amount exceeds that prescribed in Sec. 302-16.101.


Sec. 302-16.105  What standard of care must I use in incurring 
miscellaneous expenses?

    You must exercise the same care in incurring expenses that a 
prudent person would exercise if relocating at personal expense.

Subpart C--Agency Responsibilities

    Note to subpart C: Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec. 302-16.200  What governing policies must we establish for MEA?

    For MEAs, you must establish policies and procedures governing:
    (a) Who will determine whether payment for an amount in excess of 
the flat MEA is appropriate; and
    (b) How you will pay a MEA in accordance with Secs. 302-16.3 and 
302-16.4.


Sec. 302-16.201  How should we administer the authorization and payment 
of miscellaneous expenses?

    You should limit payment of miscellaneous expenses to only those 
expenses that are necessary.


Sec. 302-16.202  Are there any restrictions to the types of costs we 
may cover?

    Yes, a MEA cannot be used to reimburse:
    (a) Costs or expenses incurred which exceed maximums provided by 
statute or in this subtitle;
    (b) Costs or expenses incurred but which are disallowed elsewhere 
in this subtitle;
    (c) Costs reimbursed under other provisions of law or regulations;

[[Page 58244]]

    (d) Costs or expenses incurred for reasons of personal taste or 
preference and not required because of the move;
    (e) Losses covered by insurance;
    (f) Fines or other penalties imposed upon the employee or members 
of his/her immediate family;
    (g) Judgements, court costs, and similar expenses growing out of 
civil actions; or
    (h) Any other expenses brought about by circumstances, factors, or 
actions in which the move to a new duty station was not the proximate 
cause.


Sec. 302-16.203  What are examples of types of costs not covered by the 
MEA?

    Examples of costs which are not reimbursable from this allowance 
are:
    (a) Losses in selling or buying real and personal property and cost 
related to such transactions;
    (b) Cost of additional insurance on household goods while in 
transit to the new official station or cost of loss or damage to such 
property;
    (c) Additional costs of moving household goods caused by exceeding 
the maximum weight limitation;
    (d) Costs of newly acquired items, such as the purchase or 
installation cost of new rugs or draperies;
    (e) Higher income, real estate, sales, or other taxes as the result 
of establishing residence in the new locality;
    (f) Fines imposed for traffic infractions while en route to the new 
official station locality;
    (g) Accident insurance premiums or liability costs incurred in 
connection with travel to the new official station locality, or any 
other liability imposed upon the employee for uninsured damages caused 
by accidents for which he/she or a member of his/her immediate family 
is held responsible;
    (h) Losses as the result of sale or disposal of items of personal 
property not considered convenient or practicable to move;
    (i) Damage or loss of clothing, luggage, or other personal effects 
while traveling to the new official station locality;
    (j) Subsistence, transportation, or mileage expenses in excess of 
the amounts reimbursed as per diem or other allowances under this 
regulation;
    (k) Medical expenses due to illness or injuries while en route to 
the new official station or while living in temporary quarters at 
Government expense under the provisions of this chapter; or
    (l) Costs incurred in connections with structural alterations 
(remodeling or modernizing of living quarters, garages or other 
buildings to accommodate privately-owned automobiles, appliances or 
equipment; or the cost of replacing or repairing worn-out or defective 
appliances, or equipment shipped to the new location).

PART 302-17--RELOCATION INCOME TAX (RIT) ALLOWANCE

Sec.
302-17.1   Authority.
302-17.2   Coverage.
302-17.3   Types of moving expenses or allowances covered and 
general limitations.
302-17.4   Exclusions from coverage.
302-17.5   Definitions and discussion of terms.
302-17.6   Procedures in general.
302-17.7   Procedures for determining the WTA in Year 1.
302-17.8   Rules and procedures for determining the RIT allowance in 
Year 2.
302-17.9   Responsibilities.
302-17.10   Claims for payment and supporting documentation and 
verification.
302-17.11   Violation of service agreement.
302-17.12   Advance of funds.
302-17.13   Source of references.
Appendix A to Part 302-17--Federal Tax Tables for RIT Allowance
Appendix B to Part 302-17--State Tax Tables for RIT Allowance
Appendix C to Part 302-17--Federal Tax Tables for RIT Allowance--
Year 2
Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.


Sec. 302-17.1  Authority.

    Payment of a relocation income tax (RIT) allowance is authorized to 
reimburse eligible transferred employees for substantially all of the 
additional Federal, State, and local income taxes incurred by the 
employee, or by the employee and spouse if a joint tax return is filed, 
as a result of certain travel and transportation expense and relocation 
allowances which are furnished in kind, or for which reimbursement or 
an allowance is provided by the Government. Payment of the RIT 
allowance also is authorized for income taxes paid to the Commonwealth 
of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and 
the U.S. possessions in accordance with a decision of the Comptroller 
General of the United States (67 Comp. Gen. 135 (1987)). The RIT 
allowance shall be calculated and paid as provided in this part.


Sec. 302-17.2  Coverage.

    (a) Eligible employees. Payment of a RIT allowance is authorized 
for employees transferred on or after November 14, 1983, in the 
interest of the Government from one official station to another for 
permanent duty. The effective date of an employee's transfer is the 
date the employee reports for duty at the new official station as 
provided in part 300.3 of this title.
    (b) Individuals not covered. The provisions of this part are not 
applicable to the following individuals or employees:
    (1) New appointees;
    (2) Employees assigned under the Government Employees Training Act 
(see 5 U.S.C. 4109); or
    (3) Employees returning from overseas assignments for the purpose 
of separation.


Sec. 302-17.3  Types of moving expenses or allowances covered and 
general limitations.

    The RIT allowance is limited by law as to the types of moving 
expenses that can be covered. The law authorizes reimbursement of 
additional income taxes resulting from certain moving expenses 
furnished in kind or for which reimbursement or an allowance is 
provided to the transferred employee by the Government. However, such 
moving expenses are covered by the RIT allowance only to the extent 
that they are actually paid or incurred, and are not allowable as a 
moving expense deduction for tax purposes. The types of expenses or 
allowances listed in paragraphs (a) through (i) of this section, are 
covered by the RIT allowance within the limitations discussed.
    (a) En route travel. Travel (including per diem) and transportation 
expenses of the transferred employee and immediate family for en route 
travel from the old official station to the new official station. (See 
part 302-4 of this chapter.)
    (b) Household goods shipment. Transportation (including temporary 
storage) expenses for movement of household goods from the old official 
station to the new official station. (See part 302-7 of this chapter.)
    (c) Extended storage expenses. Allowable expenses for extended 
storage of household goods belonging to an employee transferred on or 
after November 14, 1983, through October 11, 1984, to an isolated 
location in the continental United States. (See part 302-8, of this 
chapter extended storage expenses are not covered by the RIT allowance 
for transfers on or after October 12, 1984.) (See Sec. 302-17.4(c) of 
this chapter.)
    (d) Mobile home movement. Expenses for the movement of a mobile 
home for use as a residence when movement is authorized instead of 
shipment and temporary storage of household goods. (See part 302-10 of 
this chapter.)
    (e) Househunting trip. Travel (including per diem) and 
transportation

[[Page 58245]]

expenses of the employee and spouse for one round trip to the new 
official station to seek permanent residence quarters. (See part 302-5 
of this chapter.)
    (f) Temporary quarters. Subsistence expenses of the employee and 
immediate family during occupancy of temporary quarters. (See part 302-
6 of this chapter.)
    (g) Real estate expenses. Allowable expenses for the sale of the 
residence (or expenses of settlement of an unexpired lease) at the old 
official station and for purchase of a home at the new official station 
for which reimbursement is received by the employee. (See part 302-11 
of this chapter.)
    (h) Miscellaneous expense allowance. A miscellaneous expense 
allowance for the purpose of defraying certain expenses associated with 
discontinuing a residence at one location and establishing a residence 
at the new location in connection with an authorized or approved 
permanent change of station. (See part 302-16 of this chapter.)
    (i) Relocation services. Payments, or portions thereof, made to a 
relocation service company for services provided to a transferred 
employee (see part 302-12 of this chapter), subject to the conditions 
stated in this paragraph and within the general limitations of this 
section applicable to other covered expenses.
    (1) For employees transferred on or after November 14, 1983, 
through October 11, 1984. The amount of a broker's fee or real estate 
commission, or other real estate sales transaction expenses which 
normally are reimbursable to the employee under Sec. 302-11.200 of this 
chapter, but have been paid by a relocation service company incident to 
an assigned sale from the employee, provided that such payments 
constitute income to the employee. For the purposes of this regulation, 
an assigned sale occurs when an employee obtains a binding agreement 
for the sale of his/her residence and assigns the inherent rights and 
obligations of that agreement to a relocation company that is providing 
services under contract with the employing agency. For example, if the 
employee incurs an obligation to pay a specified broker's fee or real 
estate commission under the terms of the sales agreement, this 
obligation along with the sales agreement is assigned to the relocation 
company and may, upon payment of the obligation by the relocation 
company, constitute income to the employee. (See Sec. 302-12.7 of this 
chapter entitled ``Income tax consequences of using relocation 
companies.'')
    (2) For employees transferred on or after October 12, 1984. 
Expenses paid by a relocation company providing relocation services to 
the transferred employee pursuant to a contract with the employing 
agency to the extent such payments constitute income to the employee. 
(See Sec. 302-12.7 of this chapter.)

    Note: See reference shown in parentheses for reimbursement 
provisions for each allowance listed in paragraphs (a) through (i) 
of this section. See section 217 of the Internal Revenue Code (IRC) 
and Internal Revenue Service (IRS) Publication 521 entitled ``Moving 
Expenses'' and appropriate State and local tax authority 
publications for additional information on the taxability of moving 
expense reimbursements and the allowable tax deductions for moving 
expenses.

Sec. 302-17.4  Exclusions from coverage.

    The provisions of this part are not applicable to the following:
    (a) Any tax liability that may result from payments by the 
Government to relocation companies on behalf of employees transferred 
on or after November 14, 1983, through October 11, 1984, other than the 
payments for those expenses specified in Sec. 302-17.3(i)(1).
    (b) Any tax liability incurred for local income taxes other than 
city income tax as a result of moving expense reimbursements for 
employees transferred on or after November 14, 1983, through October 
11, 1984. (See definition in Sec. 302-17.5(b).)
    (c) Any tax liability resulting from reimbursed expenses for any 
extended storage of household goods except as specifically provided for 
in Sec. 302-17.3(c).
    (d) Any tax liability resulting from paid or reimbursed expenses 
for shipment of a privately owned automobile.
    (e) Any tax liability resulting from an excess of reimbursed 
amounts over the actual expense paid or incurred. For instance, if an 
employee's reimbursement for the movement of household goods is based 
on the commuted rate schedule and his/her actual moving expenses are 
less than the reimbursement, the tax liability resulting from the 
difference is not covered by the RIT allowance. (See Sec. 302-
17.8(c)(2)(i).)
    (f) Any tax liability resulting from an employee's decision not to 
deduct moving expenses for which a tax deduction is allowable under the 
Internal Revenue Code or appropriate State and local tax codes. (See 
Secs. 302-17.8(b)(1) and 302-17.8(c)(2).)
    (g) Any tax liability resulting from the payment of recruitment, 
retention, or relocation bonuses authorized by the Office of Personnel 
Management pursuant to 5 U.S.C. 5753 and 5754, or any other provisions 
which allow relocation payments that are not reimbursements for travel, 
transportation, and other expenses incurred in relocation.


Sec. 302-17.5  Definitions and discussion of terms.

    For purposes of this part, the following definitions will apply:
    (a) State income tax. A tax, imposed by a State tax authority, that 
is deductible for Federal income tax purposes as a State income tax 
under section 164(a)(3) of the IRC. ``State'' means any one of the 
several States of the United States and the District of Columbia.
    (b) Local income tax. A tax, imposed by a recognized city or county 
tax authority, that is deductible for Federal income tax purposes as a 
local (city or county) income tax under section 164(a)(3) of the IRC; 
except, that for employees transferred on or after November 14, 1983, 
through October 11, 1984, local income tax shall be construed to mean 
only city income tax. For purposes of this regulation:
    (1) City means any unit of general local government which is 
classified as a municipality by the Bureau of the Census, or which is a 
town or township that in the determination of the Secretary of the 
Treasury possesses powers and performs functions comparable to those 
associated with municipalities, is closely settled, and contains within 
its boundaries no incorporated places as defined by the Bureau of the 
Census (31 CFR 215.2(b)(1)).
    (2) County means any unit of local general government which is 
classified as a county by the Bureau of the Census (31 CFR 215.2(e)).
    (c) Covered moving expense reimbursements or covered 
reimbursements. As used herein, these terms include those moving 
expenses listed in Sec. 302-17.3 as being covered by the RIT allowance 
and which may be furnished in kind, or for which reimbursement or an 
allowance is provided by the Government.
    (d) Covered taxable reimbursements. Covered moving expense 
reimbursements minus the tax deductions allowable under the IRC and IRS 
regulations for moving expenses. (See determination in Sec. 302-
17.8(c).)
    (e) Year 1 or reimbursement year. The calendar year in which 
reimbursement or payment for moving expenses is

[[Page 58246]]

made to, or for, the employee under the provisions of this part. All or 
part of these reimbursements (see Sec. 302-17.6) are reported to the 
IRS as income (wages, salary, or other compensation) to the employee 
for that tax year under the provisions of the IRC and IRS regulations, 
and are subject to Federal tax withholding. The withholding tax 
allowance (WTA) (see paragraph (f)(1) of this section) is calculated in 
Year 1, to cover the employee's Federal tax withholding obligations 
each time covered moving expense reimbursements are made that result in 
a Federal tax withholding obligation. For purposes of this part, an 
advance of funds for any of the covered moving expenses is not 
considered to be a reimbursement or a payment until the travel voucher 
settlement for such expenses takes place. If an employee's 
reimbursement for moving expenses is spread over more than one year, 
he/she will have more than one Year 1.
    (f) Year 2. The calendar year in which a claim for the RIT 
allowance is paid.
    (1) Generally, Year 2 will be the calendar year immediately 
following Year 1 and in which the employee files a tax return 
reflecting his/her tax liability for income received in Year 1. 
However, there may be instances where the employee's claims submission 
and/or payment of the RIT allowance is delayed beyond the calendar year 
immediately following Year 1. (Year 1 will always be the calendar year 
that reimbursements are received; see paragraph (e) of this section.) 
Year 2 will be the calendar year in which the RIT allowance is actually 
paid.
    (2) The RIT allowance is calculated in Year 2 and paid to cover the 
additional tax liability (resulting from moving expense reimbursements 
received in Year 1) not covered by the WTA paid in Year 1. If an 
employee's covered taxable reimbursements are spread over more than one 
year, he/she will have more than one Year 2.
    (g) Federal withholding tax rate (FWTR). The tax rate applied to 
incremental income to determine the amount to be withheld for Federal 
income tax from salary or other compensation such as moving expense 
reimbursements. Because moving expense reimbursements constitute 
supplemental wages for Federal income tax purposes, the 20 percent flat 
rate of withholding is generally applicable to such reimbursements. 
(See Sec. 302-17.7(c).) Agencies should refer to the Treasury Financial 
Manual, TFM 3-5000, and applicable IRS regulations for complete and up-
to-date information on this subject.
    (h) Earned income. For purposes of the RIT allowance, ``earned 
income'' shall include only the gross compensation (salary, wages, or 
other compensation such as reimbursement for moving expenses and the 
related WTA (see paragraph (n) of this section) and any RIT allowance 
(see paragraph (m) of this section) paid for moving expense 
reimbursement in a prior year) that is reported as income on IRS Form 
W-2 for the employee (employee and spouse, if filing jointly), and if 
applicable, the net earnings (or loss) for self-employment income shown 
on Schedule SE of the IRS Form 1040. Earned income may be from more 
than one source. (See Sec. 302-17.8(d).)
    (i) Marginal tax rate (MTR). The tax rate (for example, 33 percent) 
applicable to a specific increment of income. The Federal, Puerto Rico, 
and State marginal tax rates to be used in calculating the RIT 
allowance are provided in appendices A through D of this part. (See 
Sec. 302-17.8(e)(3) for instructions on local marginal tax rate 
determinations.)
    (j) Combined marginal tax rate (CMTR). A single rate determined by 
combining the applicable marginal tax rates for Federal (or Puerto 
Rico, when applicable), State, and local income taxes, using formulas 
provided in Sec. 302-17.8(e)(5).
    (k) Gross-up. Payment for the estimated additional income tax 
liability incurred by an employee as a result of reimbursements or 
payments by the Government for the covered moving expenses listed in 
Sec. 302-17.3.
    (l) Gross-up formulas. The formulas used to determine the amount of 
the gross-up for the WTA and the RIT allowance. The gross-up formulas 
used herein compensate the employee for the initial tax, the tax on 
tax, etc. Note that the WTA gross-up formula in Sec. 302-17.7(d) is 
different than the RIT gross-up formula prescribed in Sec. 302-17.8(f).
    (m) RIT allowance. The amount of payment computed and paid in Year 
2 to cover substantially all of the estimated additional tax liability 
incurred as a result of the covered moving expense reimbursements 
received in Year 1.
    (n) Withholding tax allowance (WTA). The withholding tax allowance 
(WTA), paid in Year 1, covers the employee's Federal income tax 
withholding liability on covered taxable reimbursements received in 
Year 1. The amount is computed by applying the withholding gross-up 
formula prescribed in Sec. 302-17.7(d) (using the Federal withholding 
tax rate) each time that a Federal withholding obligation is incurred 
on covered moving expense reimbursements received in Year 1. Grossing-
up the Federal withholding amount protects the employee from using part 
of his/her moving expense reimbursement to pay Federal withholding 
taxes. (See Sec. 302-17.7.)
    (o) State gross-up. Payment for the estimated additional State 
income tax liability incurred by an employee as a result of 
reimbursements or payments by the Government for the covered moving 
expenses listed in Sec. 302-17.3 that are deductible for Federal income 
tax but not for State income tax purposes.
    (p) State gross-up formula. The formula prescribed in Sec. 302-
17.8(f)(3) to be used in determining the amount to be included in the 
RIT allowance to compensate an employee for the additional State income 
tax incurred in States that do not allow the deduction of moving 
expenses.


Sec. 302-17.6  Procedures in general.

    (a) This regulation sets forth procedures for the computation and 
payment of the RIT allowance and defines agency and employee 
responsibilities. This part does not require changes to those internal 
fiscal procedures established by the individual agencies pursuant to 
IRS regulations, or the Treasury Financial Manual, provided that the 
intent of the statute authorizing the RIT allowance and this part are 
not disturbed.
    (b) The total amount reimbursed or paid to the employee, or on his/
her behalf, for travel, transportation, and other relocation expenses 
and allowances is includable in the employee's gross income pursuant to 
the IRC and certain State or local government tax codes. Some moving 
expenses for which reimbursements are received may be deducted from 
income by the employee as moving expense deductions, subject to certain 
limitations prescribed by the IRS or pertinent State or local tax 
authorities. Reimbursements for nondeductible moving expenses are 
subject to income tax. (See IRS Publication 521 entitled ``Moving 
Expenses'' and the appropriate State and local tax codes for detailed 
information.)
    (c) Usually, if the employee is reimbursed for nondeductible moving 
expenses, the amount of these reimbursements is subject to withholding 
of Federal income tax in accordance with IRS regulations at the time of 
reimbursement. Under existing fiscal procedures, the amount of the 
employee's withholding obligation is usually deducted either from 
reimbursements for the moving expenses at the time of reimbursement

[[Page 58247]]

or from the employee's salary. (See Treasury Financial Manual.)
    (d) Payment of a WTA established herein will offset deductions for 
the Federal income tax withholding on moving expense reimbursements, 
and on the WTA itself, from the employee's moving expense 
reimbursements or from salary.
    (e) The total amount of the RIT allowance can be computed after the 
end of Year 1 as soon as the earned income level, income tax filing 
status, total covered taxable reimbursements, and the applicable 
marginal tax rates can be determined. Employee claims for the RIT 
allowance should be submitted in accordance with this part and the 
employing agency's procedures.
    (f) Procedures are prescribed in Secs. 302-17.7 and 302-17.8 for 
computation and payment of the WTA and the RIT allowance. These 
procedures are built on existing fiscal procedures and IRS regulations 
regarding reporting of employee income from reimbursements and 
withholding of taxes on supplemental wages.


Sec. 302-17.7  Procedures for determining the WTA in Year 1.

    (a) General rules. The WTA is designed to cover only the employee's 
withholding tax obligation for Federal income taxes on income resulting 
from covered moving expense reimbursements. (See definition in 
Sec. 302-17.5(c).) Other withholding tax obligations, if any, such as 
for social security taxes or for State and/or local income taxes on 
income resulting from moving expense reimbursements shall not be 
included in the calculation of the WTA payment. The amount of the WTA 
is equal to the Federal income tax withholding obligation incurred by 
the employee on covered moving expense reimbursements (which are not 
offset by deductible moving expenses) and on the WTA itself. Each time 
covered moving expense reimbursements are paid to or on behalf of the 
employee, the WTA shall be calculated, accounted for, and reported as 
provided in paragraphs (b) through (g) of this section.
    (b) Determination of amount of reimbursement subject to 
withholding. Under IRS regulations, income resulting from 
reimbursements for nondeductible moving expenses is subject to 
withholding of Federal income taxes. (See IRS Publication 521, ``Moving 
Expenses.'') There are some moving expenses which may be reimbursed but 
are not covered taxable reimbursements (see definition in Sec. 302-
17.5(d)) for purposes of the WTA and RIT allowance calculations, such 
as extended storage of household goods. (See exclusions in Sec. 302-
17.4.) Therefore, the actual amount of the covered taxable 
reimbursements may be different than the amount of nondeductible moving 
expenses subject to Federal income tax withholding. The difference in 
these amounts should not be substantial; therefore, the amount of 
nondeductible moving expenses subject to Federal income tax 
withholding, as determined by the agency pursuant to IRS regulations, 
may be used in calculating the WTA. (Note that the RIT calculation 
procedure in Sec. 302-17.8 requires determination of covered taxable 
reimbursements.)
    (c) Determination of Federal withholding tax rate (FWTR). Moving 
expense reimbursements constitute supplemental wages for Federal income 
tax purposes. Therefore, an agency must withhold at the withholding 
rate applicable to supplemental wages. Currently, the supplemental 
wages withholding rate is 28 percent. The supplemental wages 
withholding rate should be used in calculating the WTA unless under an 
agency's withholding procedures a different withholding rate is used 
pursuant to IRS tax regulations. In such cases, the applicable 
withholding rate shall be substituted for the supplemental wages 
withholding rate in the calculation shown in paragraph (d) of this 
section.
    (d) Calculation of the WTA. The WTA is calculated by substituting 
the amounts determined in paragraphs (b) and (c) of this section into 
the following WTA gross-up formula:

Formula:
[GRAPHIC] [TIFF OMITTED] TR20NO01.000

Where:

Y = WTA
X = FWTR (generally, 28 percent)
N = nondeductible moving expenses/covered taxable reimbursements

Example:
If:

X = 28 percent
N = $20,000

Then:
[GRAPHIC] [TIFF OMITTED] TR20NO01.001

Y = .3889 ($20,000)
Y = $7778.00

    (e) WTA payment and employee agreement for repayment. (1) The WTA 
may be calculated several times within Year 1 if reimbursements for 
moving expenses are made on more than one travel voucher. Each time an 
employee is reimbursed for moving expenses which are subject to Federal 
tax withholding in accordance with the IRS regulations, the WTA will be 
calculated and paid unless the employee fails to comply with the 
requirements in paragraph (e)(2) of this section.
    (2) The employee shall be required to agree in writing to repay any 
excess amount paid to him/her in Year 1 (see Secs. 302-17.8(f)(5) and 
302-17.9(b)(3)), and submit the required certified tax information and 
claim for his/her RIT allowance within a reasonable length of time (as 
determined by the agency) after the close of Year 1. Failure of the 
employee to comply with this requirement will preclude the agency's 
payment of the WTA. The entire WTA will be considered an excess payment 
if the RIT allowance claim is not submitted in a timely manner to 
settle the RIT allowance account.
    (f) Determination of employee's withholding tax on WTA. Since the 
amount of the WTA is considered income to the employee, it is subject 
to the same tax withholding requirements as all other moving expense 
reimbursements. (See Treasury Financial Manual, Section 4080, Moving 
Expense Reimbursements, for withholding requirements.)
    (g) End of year reporting. At the end of the year, agencies 
generally are required to issue IRS Form(s) W-2 for each employee 
showing total gross compensation (including moving expense 
reimbursements) and the applicable amount of Federal taxes withheld. 
For tax reporting purposes, the WTA is to be treated as a moving 
expense reimbursement. The total amount of the employee's WTA's paid 
during the year as well as the amount of moving expense reimbursements 
should be included as income on the employee's Form W-2. The Federal 
tax withholding amount applicable to the moving expense reimbursements 
and the WTA should also be included on the employee's Form W-2. The 
amount of the WTA's also will be furnished to the employee along with 
the amount of moving expense reimbursements on IRS Form 4782 or another 
itemized listing provided for the employee's use in preparing his/her 
tax return (see IRS regulations for further guidance) and in claiming 
the RIT allowance as provided in Sec. 302-17.8.


Sec. 302-17.8  Rules and procedures for determining the RIT allowance 
in Year 2.

    (a) Summary/overview of procedures. The RIT allowance will be 
calculated and claimed in Year 2. This can be accomplished as soon as 
the employee can determine earned income (as defined herein), income 
tax filing status, covered taxable reimbursements for

[[Page 58248]]

Year 1, and the applicable marginal tax rates. The RIT allowance is 
then calculated using the gross-up formula under procedures prescribed 
herein. Since the RIT allowance is considered income, appropriate 
withholding taxes on the RIT allowance are deducted and the balance 
constitutes the net payment to the employee. Rules, procedures, and the 
prescribed tax tables for these calculations are provided in paragraphs 
(b) through (g) of this section, and in appendices A, B, and C of this 
part.
    (b) General rules and assumptions. (1) The procedures prescribed 
herein for calculations and payment of the RIT allowance are based on 
certain assumptions jointly developed by GSA and IRS, and tax tables 
developed by IRS. This approach avoids a potentially controversial and 
administratively burdensome procedure requiring the employee to furnish 
extensive documentation, such as certified copies of actual tax returns 
and reconstructed returns, in support of a claim for a RIT allowance 
payment. Specifically, the following assumptions have been made:
    (i) The employee will claim allowable moving expense deductions for 
the same tax year in which the corresponding moving expense 
reimbursements are included in income;
    (ii) Changes to the IRC, applicable to the 1987 and subsequent tax 
years, require that allowable moving expense deductions must be taken 
as an itemized deduction from gross income rather than as an adjustment 
to gross income as in previous tax years. It is assumed that employees 
will receive the benefit of allowable moving expense deductions to 
offset income either by itemizing their moving expense deductions or 
through the increased standard deductions.
    (iii) Prior to the Tax Reform Act of 1986, it was assumed that the 
employee's (and spouse's, if a joint return is filed) earned income, 
filing status, and CMTR determined for Year 1 (and used in determining 
the RIT allowance in Year 2) would remain the same or would not be 
substantially different in the second and subsequent tax years. 
However, the Tax Reform Act of 1986 substantially changed the Federal 
tax structure making it necessary to compute a separate CMTR for Year 1 
and for Year 2. (See paragraph (e) of this section.) The formula for 
calculating the RIT allowance to be paid in 1988 and subsequent years 
is shown in paragraph (f) of this section. It is assumed that within 
the accuracy of the calculation, the State and local tax rates for Year 
1 and Year 2 will remain the same or will not be substantially 
different. Therefore, the State and local tax rates for Year 1 shall be 
used in calculating the CMTR for Year 2.
    (2) The prescribed procedures, which yield an estimate of an 
employee's additional tax liability due to moving expense 
reimbursements, are to be used uniformly. They are not to be adjusted 
to accommodate an employee's unique circumstance which may differ from 
the assumed circumstances stated in paragraph (b)(1) of this section.
    (3) An adjustment of the RIT allowance paid in Year 2 for the 
covered taxable reimbursements received in Year 1 is required if the 
tax information certified to on the RIT allowance claim is different 
than that shown on the actual Federal tax return filed with IRS for 
Year 1 or changed for any reason after filing of the tax return, so as 
to affect the CMTR's used in the RIT allowance calculation. (See 
Sec. 302-17.10 for claims procedures.)
    (c) Determination of covered taxable reimbursements. (1) Generally, 
the amount of the covered taxable reimbursements is the difference 
between (i) the amount of covered moving expense reimbursements for the 
allowances listed in Sec. 302-17.3 that was included in the employee's 
income in Year 1, and (ii) the maximum amount of allowable moving 
expenses that may be claimed as a moving expense deduction by the 
employee on his/her Federal tax return under IRS tax regulations to 
offset the income resulting from moving expense reimbursements for Year 
1. The covered taxable reimbursements will be determined as if the 
employee had itemized and deducted all allowable moving expense 
deductions. (See assumption made in paragraph (b)(1)(ii) of this 
section.) If the employee is precluded from claiming moving expense 
deductions because he/she does not meet IRS requirements for the 
distance test, then the amount of covered taxable reimbursements is the 
same as the amount of covered moving expense reimbursements. (See 
Sec. 302-17.5(d).)
    (2) For purposes of calculating the RIT allowance, the following 
special rules apply to the determination of moving expense deductions 
to offset moving expense reimbursements reported as income:
    (i) The total amount of reimbursement (which was reported as 
income) for the expenses of en route travel for the employee and family 
(see Sec. 302-17.3(a)) and transportation (including up to 30 days 
temporary storage) of household goods (see Sec. 302-17.3(b)) to the new 
official station shall be used as a moving expense deduction. (See also 
Sec. 302-17.4(e) and (f).)
    (ii) The total amount of reimbursement for a househunting trip, 
temporary quarters (up to 30 days at new station) and real estate 
transaction expenses (see Sec. 302-17.3(e), (f), (g), and (i)), up to 
the maximum allowable deduction under IRS tax regulations, shall be 
used as a moving expense deduction. For example, an employee and spouse 
filing a joint return and residing in the same household at the end of 
the tax year may deduct up to $3,000 for these expenses. (No more than 
$1,500 of the $3,000 may be claimed for a househunting trip and 
temporary quarters expenses combined.) If the employee was reimbursed 
$1,350 for a househunting trip and temporary quarters expenses and 
$9,000 for real estate expenses, the moving expense deductions would be 
$1,350 for the househunting trip and temporary quarters expenses and 
$1,650 for real estate expenses. If the employee's reimbursement was 
$1,850 for the househunting trip and temporary quarters expenses and 
$9,000 for real estate expenses, the moving expense deductions would be 
$1,500 for the househunting trip and temporary quarters expenses and 
$1,500 for real estate expenses. If the employee had no reimbursement 
for a househunting trip and temporary quarters, the full $3,000 would 
be applied to the $9,000 reimbursement for real estate expenses. (See 
IRS Publication 521, ``Moving Expenses,'' for these and other maximums 
which vary by situation and filing status.)
    (3) Procedures and examples are provided herein as if all moving 
expense reimbursements are received in one year with all moving expense 
deductions applied in that same year to arrive at the covered taxable 
reimbursements. However, when reimbursements span more than one year, 
the amount of covered taxable reimbursements must be determined 
separately for each reimbursement year (Year 1). The maximum moving 
expense deductions apply to the entire move. Under IRS tax regulations, 
the employee has some discretion as to when he/she claims these 
deductions (e.g., in the year of the move when the expense was paid or 
in the year of reimbursement, if these actions do not occur in the same 
year). However, for purposes of the RIT allowance procedures, the 
moving expense deductions will be applied in the year that the 
corresponding reimbursement is made. For example, if an employee 
incurred and was reimbursed $1,000 for a househunting trip and 
temporary quarters in 1989 and an additional $1,000 for temporary

[[Page 58249]]

quarters in 1990, this employee, according to his/her particular 
situation and tax filing status, may deduct $1,500 of these expenses in 
moving expense deductions. In calculating the RIT allowance for 1989, 
$1,000 of the $1,500 deduction is used to offset the $1,000 
reimbursement in 1989 resulting in zero covered taxable reimbursements 
for the househunting trip and temporary quarters for 1989. The 
remaining $500 (balance of the $1,500 not used in determining covered 
taxable reimbursements for 1989) will be used to offset the $1,000 
temporary quarters reimbursement in 1990 (second Year 1), leaving $500 
of the temporary quarters reimbursement as a covered taxable 
reimbursement for 1990.
    (4) Although the WTA amount is included in income (see Sec. 302-
17.7), it shall not be included in the amount of covered taxable 
reimbursements. Under the procedures and formulas established herein, 
the proper amount of the RIT allowance is calculated using the RIT 
gross-up formula with the WTA and any prior RIT allowance payments 
excluded from covered taxable reimbursements.
    (5) Agencies are cautioned that there may be moving expenses 
reimbursed to the employee that are not covered by the RIT allowance. 
(See exclusions in Sec. 302-17.4; also see discussion in Sec. 302-17.7 
regarding covered taxable reimbursements versus nondeductible 
expenses.)
    (d) Determination of income level and filing status. In order to 
determine the CMTR's needed to calculate the RIT allowance, the 
employee must determine the appropriate amount of earned income (as 
prescribed herein) that was or will be reported on his/her Federal tax 
return for the tax year in which the covered taxable reimbursements 
were received (Year 1). Such amount will also include the spouse's 
earned income if a joint filing status is claimed. For purposes of this 
regulation, appropriate earned income shall include only the amount of 
gross compensation reported on IRS Form(s) W-2, and, if applicable, the 
net earnings (or loss) from self-employment income as shown on Schedule 
SE of IRS Form 1040. (See Sec. 302-17.5(h).) (Note that moving expense 
reimbursements including the WTA amounts and any RIT allowance paid for 
a prior Year 1 are to be included in earned income and should be shown 
as income on the Form W-2; if they are not, other appropriate 
documentation shall be furnished by the agency.) (See Sec. 302-
17.7(g).) The amount of earned income as determined under this 
paragraph and the tax filing status (for example, from lines 1 through 
5 on the 1987 IRS Form 1040) shall be contained in a certified 
statement on, or attached to, the voucher claiming the RIT allowance. 
(See Sec. 302-17.10.) If a joint filing status is claimed and the 
spouse's earned income is included, the spouse must sign the certified 
statement. If the spouse does not sign the statement, earned income 
will include only the employee's earned income and the RIT allowance 
will be calculated on that basis. This condition will not apply if an 
employee is allowed, under IRS rules, to file a joint return as a 
surviving spouse.
    (e) Determination of the CMTR's. The gross-up formula used to 
calculate the RIT allowance in paragraph (f) of this section, requires 
the use of two CMTR's--one for Year 1 in which reimbursements were 
received and the other for Year 2 in which the RIT allowance is paid. 
CMTR's are single tax rates calculated to represent the Federal, State, 
and/or local income tax rates applicable to the earned income 
determined for Year 1. (See paragraph (d) of this section.) The CMTR's 
will be determined as follows:
    (1) Federal marginal tax rates. The Federal marginal tax rates for 
Year 1 and Year 2 are determined by using the income level and filing 
status determined under paragraph (d) of this section and contained in 
the certified statement by the employee (or employee and spouse) on the 
RIT allowance claim, and applying the prescribed Federal tax tables 
contained in appendices A and C of this part. For example, if the 
income level for the 1989 tax year (Year 1) was $84,100 for a married 
employee filing a Federal joint return, the Federal marginal tax rate 
would be 33 percent for Year 1 (1989) (see appendix A of this part) and 
28 percent for Year 2 (1990) (see appendix C of this part). These rates 
would be used regardless of how much of the $84,100 was attributable to 
reimbursement for the employee's relocation expenses. (Note that these 
marginal rates are different from the withholding tax rate used for the 
WTA.) If the employee incurs only Federal income tax (i.e., there are 
no State or local taxes), the Federal marginal tax rates determined 
from appendices A and C of this part are the CMTR's to be used in the 
RIT gross-up formula provided in Sec. 302-17.8(f). In such cases, the 
provisions of paragraphs (e)(2) and (3) of this section, do not apply.
    (2) State marginal tax rate. (i) If the employee incurs an 
additional State income tax (see definition in Sec. 302-17.5(a)) 
liability as a result of moving expense reimbursements, the appropriate 
State tax table in appendix B of this part is to be used to determine 
the applicable State marginal tax rate that will be substituted into 
the formula for determining the CMTR for both Year 1 and Year 2. The 
appropriate State tax table will be the one that corresponds to the tax 
year in which the reimbursements are paid to the employee (Year 1). The 
income level determined in paragraph (d) of this section for Federal 
taxes shall be used to identify the appropriate income bracket in the 
State tax table. The applicable State marginal tax rate is obtained 
from the selected income bracket column for the State where the 
employee is required to pay State income tax on moving expense 
reimbursements. The tax rates shown in the table apply to all employees 
regardless of their filing status, except where a separate rate is 
shown for a single filing status.
    (ii) The lowest income bracket shown in the State tax tables in 
appendix B of this part is $20,000-$24,999. In cases where the 
employee's (employee's and spouse's, if filing jointly) earned income 
as determined under paragraph (d) of this section is less than this 
income bracket, an appropriate State marginal tax rate shall be 
established by the employing agency from the applicable State tax code 
or regulations issued pursuant thereto. Such State marginal tax rate 
shall be representative of the earned income level in question but in 
no case more than the marginal tax rate established in appendix B of 
this part for the $20,000-$24,999 income bracket for the particular 
State in which an additional tax obligation has been incurred.
    (iii) The prescribed State marginal tax rates generally are 
expressed as a percent of taxable income. However, if the applicable 
State marginal tax rate is stated as a percentage of the Federal income 
tax liability, the State tax rate must be converted to a percent of 
taxable income to be used in the CMTR formulas in paragraph (e)(5) of 
this section. This is accomplished by multiplying the applicable 
Federal tax rate for Year 1 by the applicable State tax rate. For 
example, if the Federal tax rate is 33 percent for Year 1 and the State 
tax rate is 25 percent of the Federal income tax liability, the State 
tax rate stated as a percent of taxable income would be 8.25 percent. 
The State tax rate thus determined for Year 1 will be used in 
determining the CMTR for both Year 1 and Year 2.
    (iv) An employee may incur a State income tax liability on moving 
expense reimbursements in more than one State at the same or different 
marginal tax rates (i.e., double taxation). For example, an employee 
may incur taxes on moving expense reimbursements in

[[Page 58250]]

one State because of residency in that State, and in another State 
because that particular State taxes income earned within its 
jurisdiction irrespective of whether the employee is a resident. In 
such cases, a single State marginal tax rate must be determined for use 
in the CMTR formulas in paragraph (e)(5) of this section. The general 
rules in paragraph (e)(2)(iv) (A) through (C) of this section apply in 
determining the applicable single State marginal tax rate in such 
cases.
    (A) If two or more States impose an income tax on an employee's 
moving expense reimbursement, but no two States tax the same portion of 
the reimbursement, then the reimbursement is not subject to double 
taxation. In this situation, the average of the applicable State 
marginal tax rates, as determined under paragraphs (e)(2) (i) through 
(iii) of this section, shall be treated as being imposed on the entire 
reimbursement, and shall be used in the CMTR formula.
    (B) If two or more States impose an income tax on the moving 
expense reimbursement, and more than one State taxes the same portion 
of the reimbursement, but those States allow an adjustment or credit 
for income taxes paid to the other State(s), then the reimbursement is 
not subject to double taxation. In this situation, the highest of the 
applicable State marginal tax rates, as determined under paragraphs 
(e)(2) (i) through (iii) of this section, shall be used in the CMTR 
formula.
    (C) If two or more States impose an income tax on the moving 
expense reimbursement, and more than one State taxes the same portion 
of the reimbursement without allowing an adjustment or credit for 
income taxes paid to the other, then the reimbursement is subject to 
double taxation. In this situation, the sum of the applicable State 
marginal tax rates, as determined under paragraphs (e)(2) (i) through 
(iii) of this section, shall be used in the CMTR formula.
    (3) Local marginal tax rate. Because of the impracticality of 
establishing a single marginal tax rate table for local income taxes 
that could be applied uniformly on a nationwide basis, appropriate 
local marginal tax rates shall be determined as provided in paragraphs 
(e)(3)(i) through (iii) of this section.
    (i) If the employee incurs an additional local income tax (see 
definition Sec. 302-17.5(b)) liability as a result of moving expense 
reimbursements, he/she shall certify to such fact when claiming the RIT 
allowance (see certification statement in Sec. 302-17.10) by specifying 
the name of the locality imposing the income tax and the applicable 
marginal tax rate determined from the actual marginal tax rate table or 
schedule prescribed by the taxing locality. The marginal tax rate shall 
be the one applicable to the taxable income portion of the amount of 
earned income determined under paragraph (d) of this section for the 
employee (and spouse, if filing jointly). The same tax rate shall be 
used in calculating the CMTR for both Year 1 and Year 2. The employing 
agency shall establish procedures to determine whether the employee-
certified local marginal tax rate is appropriate for the employee's 
income level and filing status and approve its use in the CMTR 
formulas. (See also Sec. 302-17.10(b)(2).)
    (ii) If the local marginal tax rate is stated as a percentage of 
Federal or State income tax liability, such rate must be converted to a 
percent of taxable income for use in the CMTR formulas. This is 
accomplished by multiplying the applicable Federal or State tax rate 
for Year 1 as determined in paragraph (e) (1) or (2) of this section by 
the applicable local tax rate. For example, if the State tax rate for 
Year 1 is 6 percent and the local tax rate is 50 percent of State 
income tax liability, the local tax rate stated as a percentage of 
taxable income would be 3 percent. The local tax rate thus determined 
for Year 1 will be used in determining the CMTR for both Year 1 and 
Year 2.
    (iii) The situations described in paragraph (e)(2)(iv) of this 
section with respect to State income taxes may also be encountered with 
local income taxes. If such situations do occur, the rules prescribed 
for determining the single State marginal tax rate shall also be 
applied to determine the single local marginal tax rate for use in the 
CMTR formulas.
    (4) Marginal tax rates for the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, and the U.S. 
possessions--(i) The Commonwealth of Puerto Rico. A Federal employee 
who is relocated to or from a point, or between points, in the 
Commonwealth of Puerto Rico may be subject to income tax on the 
employee's salary (including moving expense reimbursements) by both the 
U.S. Government and the government of Puerto Rico. However, under the 
current law of Puerto Rico, such employee receives a credit on his/her 
Puerto Rico income tax for the amount of taxes paid to the United 
States. The rules in paragraphs (e)(4)(i)(A) through (C) apply in 
determining the marginal tax rate applicable for transfers to, from, or 
between points in Puerto Rico.
    (A) The applicable Puerto Rico marginal tax rate shall be 
determined by using the income level determined in paragraph (d) of 
this section for Federal taxes and the employee's filing status. The 
Puerto Rico marginal tax rate for Year 1 will be used in computing the 
CMTR for both Year 1 and Year 2. The Puerto Rico tax tables are 
contained in appendix D of this part.
    (B) If the applicable Puerto Rico marginal tax rate is higher than 
the applicable Federal marginal tax rate, then the total amount of 
taxes paid by the employee to both jurisdictions is equal to the 
employee's total income tax liability to the Commonwealth of Puerto 
Rico before any credit is given for taxes paid to the United States. 
The Federal marginal tax rate, therefore, is of no consequence and will 
be disregarded. In such cases, the formula in paragraph (e)(5)(iii) of 
this section will be used to compute the CMTR. The CMTR formula shall 
include only the Puerto Rico marginal tax rate, the State marginal tax 
rate as determined under paragraph (e)(2) of this section (when 
applicable), and the local marginal tax rate as determined under 
paragraph (e)(3) of this section. For purposes of applying the Puerto 
Rico CMTR formula in paragraph (e)(5)(iii) of this section, the State 
marginal tax rate will be applicable if both Puerto Rico and one or 
more of the States impose an income tax on the moving expense 
reimbursement, and more than one of these entities taxes the same 
portion of the reimbursement without allowing an adjustment or credit 
for income taxes paid to the other. In this situation, the S component 
of the CMTR formula will be the applicable State marginal tax rate as 
determined under paragraph (e)(2) of this section.
    (C) If the applicable Puerto Rico marginal tax rate is equal to or 
lower than the applicable Federal marginal tax rate, then the total 
amount of taxes paid by the employee to both jurisdictions is equal to 
the employee's total Federal income tax liability. The Puerto Rico 
marginal tax rate, therefore, is of no consequence in such cases and 
will be disregarded. The CMTR will be computed using the formula in 
paragraphs (e)(5) (i) and (ii) of this section. This formula will 
include the Federal marginal tax rate as determined under paragraph 
(e)(1) of this section, the State marginal tax rate as determined under 
paragraph (e)(2) of this section (when applicable), and the local 
marginal tax rate as determined under paragraph (e)(3) of this section. 
The State marginal tax rate will be applicable if one or more States 
impose tax on the moving expense reimbursement.

[[Page 58251]]

    (ii) The Commonwealth of the Northern Mariana Islands and the U.S. 
possessions. A Federal employee who is relocated to or from a point, or 
between points, in the Commonwealth of the Northern Mariana Islands or 
the U.S. possessions (Guam, American Samoa, and the U.S. Virgin 
Islands) is subject to both Federal income tax and income tax assessed 
by the Commonwealth of the Northern Mariana Islands or the U.S. 
possession, as applicable. However, the income tax system and rates for 
the Commonwealth of the Northern Mariana Islands and for the U.S. 
possessions are identical to the U.S. Federal income tax system and 
rates. This constitutes a ``mirror tax'' system. A tax credit or 
exclusion is provided by one of the taxing jurisdictions (either the 
U.S., the Commonwealth of the Northern Mariana Islands, or the U.S. 
possession, as appropriate) to prevent double taxation. The marginal 
tax rate for the Commonwealth of the Northern Mariana Islands or the 
U.S. possession, therefore, is of no consequence since it is identical 
to the Federal marginal income tax rate and is completely offset by a 
corresponding credit or exclusion. Thus, the Commonwealth's or the 
possession's tax rate will not be factored into the CMTR formula. The 
CMTR will be computed as provided in paragraphs (e)(5) (i) and (ii) 
based solely on the Federal marginal tax rate; when applicable, the 
State(s) marginal tax rate; and the local marginal tax rate.
    (5) Calculation of the CMTR's. As stated above, the gross-up 
formula for calculating the RIT allowance requires the use of two 
CMTR's. However, the required CMTR's cannot be calculated by merely 
adding the Federal, State, and local marginal tax rates together 
because of the deductibility of State and local income taxes from 
income for Federal income tax purposes. The State tax tables prescribed 
in appendix B of this part are designed to use the same income amount 
as that determined for the Federal taxes, which reflects, among other 
things, State and local tax deductions. The formulas prescribed below 
for calculating the CMTR's are designed to adjust the State and local 
tax rates to compensate for their deductibility from income for Federal 
tax purposes.
    (i) Calculation of the CMTR for Year 1. The following formula shall 
be used to calculate the CMTR for Year 1.

CMTR Formula: X = F + (1-F)S + (1-F)L

Where:

X = CMTR for Year 1
F = Federal tax rate for Year 1
S = State tax rate for Year 1
L = local tax rate for Year 1

    (A) Federal, State, and local taxes incurred. If the employee 
incurs Federal, State, and local income taxes on moving expense 
reimbursements, the CMTR formula may be solved as follows:

Example:
If:

F = 33 percent of income
S = 6 percent of income
L = 3 percent of income

Then:

X = .33 + (1.00-.33).06 + (1.00-.33).03
X = .3903

    (B) Federal and State income taxes only. If the employee incurs tax 
liability on moving expense reimbursements for Federal and State income 
taxes but none for local income tax, the value of ``L'' is zero and the 
CMTR formula may be solved as follows:

Example:
If:

F = 33 percent of income
S = 6 percent of income
L = Zero

Then:

X = .33 + (1.00-.33).06
X = .3702

    (C) Federal and local income taxes only. If the employee incurs a 
tax liability on moving expense reimbursements for Federal and local 
income taxes but none for State income tax, the value of ``S'' is zero 
and the CMTR formula may be solved as follows:

Example:
If:

F = 33 percent of income
S = Zero
L = 3 percent of income

Then:

X = .33 + (1.00-.33).03
X = .3501

    (ii) Calculation of the CMTR for Year 2. The calculation of the 
CMTR for Year 2 is the same as described for Year 1, except that the 
Federal tax rate for Year 2 is used in place of the Federal tax rate 
for Year 1. State and local tax rates remain the same as for Year 1. 
The following formula shall be used to determine the CMTR for Year 2:

CMTR Formula: W = F + (1-F)S + (1-F)L

Where:

    W = CMTR for Year 2 F
F = Federal tax rate for Year 2
S = State tax rate for Year 1
L = local tax rate for Year 1

    (iii) Calculation of CMTR's for Puerto Rico. The following formula 
shall be used to calculate the CMTR for transfers to, from, or between 
points in Puerto Rico. (This formula is different from the formulas 
provided in paragraphs (e)(5) (i) and (ii) of this section since the 
Federal marginal tax rate is disregarded.)

CMTR Formula: X = P + S + L

Where:

X = CMTR for Year 1 and Year 2
P = Puerto Rico tax rate for Year 1
S = State tax rate for Year 1, when applicable (See Sec. 302-
17.8(e)(4)(i)(B).)
L = Local tax rate for Year 1

    (f) Determination of the RIT allowance. The RIT allowance to cover 
the tax liability on additional income resulting from the covered 
taxable reimbursements received in Year 1 is calculated in Year 2 as 
provided below:
    (1) The RIT allowance is calculated by substituting the amount of 
covered taxable reimbursements for Year 1, the CMTR's for Year 1 and 
Year 2, and the total amount of the WTA's paid in Year 1 into the 
gross-up formula as follows:
Formula:
[GRAPHIC] [TIFF OMITTED] TR20NO01.002

Where:

Z = RIT allowance payable in Year 2
X = CMTR for Year 1
W = CMTR for Year 2
R = covered taxable reimbursements
Y = total WTA's paid in Year 1

Example:
If:

X = .3903
W = .3448
R = $21,800
Y = $5,450

Then:
[GRAPHIC] [TIFF OMITTED] TR20NO01.003


[[Page 58252]]


Z = .5957($21,800)-09.9306($5,450)
Z = $12,986.26-09$5,071.77
Z = $7,914.49

    (2) There may be instances when a WTA was not paid in Year 1 at the 
time moving expense reimbursements were made. In cases where there is 
no WTA to be deducted, the value of ``Y'' is zero and the formula 
stated in paragraph (f)(1) of this section, for calculating the amount 
of the RIT allowance (Z) due the employee in Year 2 may be solved as 
shown in the following example:
Example:
If:
X = .3903
W = .3448
R = $21,800
Y = Zero

Then:
[GRAPHIC] [TIFF OMITTED] TR20NO01.004

Z = .5957 ($21,800)
Z = $12,986.26

    (3) Certain States do not allow the deduction of all or part of the 
covered moving expenses that are deductible for Federal income tax 
purposes. The State gross-up to cover the additional State income tax 
liability resulting from the covered moving expense reimbursements 
received in Year 1 that are deductible for Federal income tax purposes 
but not for State income tax purposes is calculated in Year 2 as 
follows:
    (i) The State gross-up is calculated by substituting the amount of 
covered moving expense reimbursements that are deductible for Federal 
income tax purposes but not for State income tax purposes, the Federal 
tax rate for Year 1, the State tax rate for Year 1, and the combined 
marginal tax rate for Year 2 into the State gross-up formula as 
follows:

Formula:
[GRAPHIC] [TIFF OMITTED] TR20NO01.005

Where:

A = State gross-up
F = Federal tax rate for Year 1
S = State tax rate for Year 1
W = CMTR for Year 2
N = covered moving expense reimbursements that are deductible for 
Federal income tax purposes but not for State income tax purposes

Example:
If:

F = .33
S = .06
W = .3448
N = $9,250

Then:
[GRAPHIC] [TIFF OMITTED] TR20NO01.006

A = .0614 ($9,250)
A = $567.95

    (ii) Add the State gross-up to the RIT allowance as calculated 
using the formula in paragraph (f)(1) of this section. The result is 
the RIT allowance adjusted for those States that do not allow moving 
expense deductions. Example:

RIT allowance payable in Year..............................    $7,914.49
Plus adjustment factor.....................................      +567.95
                                                            ------------
  Total....................................................    $8,482.44
 

    (4) If the amount of the RIT allowance is greater than zero, it is 
payable to the employee on the travel voucher as a relocation or moving 
expense allowance. The RIT allowance amount is included in the 
employee's gross income for Year 2 and, therefore, subject to 
appropriate withholding taxes. (See net payment to employee in 
paragraph (g) of this section.) The RIT allowance amount will be 
reported on IRS Form W-2 for Year 2 (including applicable income tax 
withholding amounts) and on IRS Form 4782 for the employee's 
information.
    (5) If the calculation of the RIT allowance results in a negative 
amount, the employee is obligated to repay this amount as a debt due 
the Government. (See Secs. 302-17.7(e)(2) and 302-17.9(b).)
    (6) Any changes to the employee's income level or filing status for 
Year 1 that would affect the marginal tax rates (Federal, State, or 
local) used in calculating the RIT allowance must be reported to the 
agency by the employee as provided in Sec. 302-17.9(b)(2). (See also 
Sec. 302-17.10 for certified statement regarding these changes.)
    (g) Determination of the net payment due employee in Year 2. Since 
the amount of the RIT allowance is income to the employee in Year 2, it 
is subject to the same tax withholding requirements as all other moving 
expense reimbursements. Agencies should determine the appropriate 
amounts for withholding taxes under their internal tax withholding 
procedures. The amount of withholding taxes is deducted from the RIT 
allowance to arrive at the net payment to the employee.


Sec. 302-17.9  Responsibilities.

    (a) Agency. Finance offices will calculate the amount of the gross-
up for the WTA in Year 1 in accordance with procedures outlined herein 
and credit this amount to the employee at the time of reimbursement as 
provided in Sec. 302-17.7(e). The WTA will be reflected on the 
employee's Form W-2 for Year 1. The RIT allowance may be calculated in 
Year 2 either by the employee or by the agency finance office based on 
information provided by the employee on the voucher, as directed by the 
agency's implementing policies and procedures. In addition, agencies 
shall prescribe appropriate and necessary implementing procedures as 
provided elsewhere in this part.
    (b) Employee. (1) The employee is required to submit a claim for 
the RIT allowance and to file the tax information for Year 1 specified 
in Sec. 302-17.10 with his/her agency in Year 2, regardless of whether 
any additional reimbursement for the RIT allowance is owed the 
employee. (See Sec. 302-17.7(e) for employee agreement.)
    (2) If any action occurs (i.e., amended tax return, tax audit, 
etc.) that would change the information provided in Year 2 by the 
employee to his/her agency for use in calculating the RIT allowance due 
the employee for Year 1 taxes, this information must be provided by the 
employee to his/her agency under procedures prescribed by the agency. 
(See Sec. 302-17.10.)
    (3) If the calculation of the RIT allowance results in a negative 
amount, the employee is obligated to repay this amount as a debt due 
the Government. (See Secs. 302-17.7(e)(2) and 302-17.8(f)(5).)


Sec. 302-17.10  Claims for payment and supporting documentation and 
verification.

    (a) Claims forms. Claims for payment of the RIT allowance shall be 
submitted by the employee in Year 2 on SF 1012 (Travel Voucher) or 
other authorized travel voucher form. When claiming payment for the RIT 
allowance, the employee shall furnish and certify to certain tax 
information that has been or will be shown on his/her actually prepared 
tax returns. The spouse must also sign statement if joint filing status 
is claimed and spouse's income is included on statement. This 
information shall be contained in a certified statement on, or attached 
to, the SF 1012 reading essentially as follows:

Certified Statement

    I certify that the following information, which is to be used in 
calculating the RIT allowance to which I am entitled, has been (or 
will be) shown on the income tax returns filed (or to be filed) by 
me (or by my spouse and me) with the applicable Federal, State, and 
local (specify which) tax authorities for the 19____tax year.

--Gross compensation as shown on attached IRS Form(s) W-2 and, if 
applicable, net earnings (or loss) from self-employment income shown 
on attached Schedule SE (Form 1040):

[[Page 58253]]



----------------------------------------------------------------------------------------------------------------
                                                                  Form(s)  W-
                                                                       2       Schedule SE
------------------------------------------------------------------------------------------
Employee........................................................            $            $
Spouse (if filing jointly)......................................            $            $
Total (Both columns)............................................  ...........            $
----------------------------------------------------------------------------------------------------------------

--Filing status: ____________ (Specify one of the filing status 
items that was (or will be) claimed on IRS Form 1040.)
--Marginal tax rates from appendices A, B, and C of 41 CFR part 302-
17 and local tax tables derived under procedures prescribed in 41 
CFR part 302-17:

Federal for Year 1-----------------------------------------------------
Federal for Year 2-----------------------------------------------------
State (specify which):-------------------------------------------------
Local (specify which):-------------------------------------------------

    The above information is true and accurate to the best of my 
knowledge. I (we) agree to notify the appropriate agency official of 
any changes to the above (i.e., from amended tax returns, tax audit, 
etc.) so that appropriate adjustments to the RIT allowance can be 
made. The required supporting documents are attached. Additional 
documentation will be furnished if requested.
    I (we) further agree that if the 12-month service agreement 
required by 41 CFR 302-2.13 is violated, the total amount of the RIT 
allowance will become a debt due the United States Government and 
will be repaid according to agency procedures.
----------------------------------------------------------------------
Employee's signature

----------------------------------------------------------------------
Date

----------------------------------------------------------------------
Spouse's signature (if filing jointly)\1\
----------------------------------------------------------------------
Date

    \1\ If a joint filing status is claimed and spouse's income is 
included, the spouse must sign the statement. If the spouse does not 
sign the document, earned income will include only the employee's 
earned income as provided in 41 CFR 302-17.8(d). This condition will 
not apply if an employee is allowed, under IRS rules, to file a 
joint return as a surviving spouse.

    (b) Supporting documentation/verification. The claim for the RIT 
allowance shall be supported by documentation attached to the voucher 
and by verification of State and local tax obligations as provided 
below:
    (1) Copies of the appropriate IRS Forms W-2 and, if applicable, the 
completed IRS Schedule SE (Form 1040) shall be attached to the voucher 
to substantiate the income amounts shown in the certified statement. 
Employee (and spouse, if filing jointly) must agree to provide 
additional documentation to verify income amounts, filing status, and 
State and local income tax obligations if requested by the agency.
    (2) In order to determine or verify whether a particular State or 
local tax authority imposes a tax on moving expense reimbursements, it 
is incumbent upon the appropriate agency officials to become familiar 
with the State and local tax laws that affect their transferring 
employees. In cases where the taxability of moving expense 
reimbursements is not clear, an agency may pay a RIT allowance which 
reflects only those State and local tax obligations that are clearly 
imposed under State and local tax law. Once the questionable State or 
local tax obligations are resolved, agencies may recompute the RIT 
allowance and make appropriate payment adjustments.
    (c) Fraudulent claims. A claim against the United States is 
forfeited if the claimant defrauds or attempts to defraud the 
Government in connection therewith (28 U.S.C. 2514). In addition, there 
are two criminal provisions under which severe penalties may be imposed 
on an employee who knowingly presents a false, fictitious, or 
fraudulent claim against the United States (18 U.S.C. 287 and 1001). 
The employee's claim for payment of the RIT allowance shall accurately 
reflect the facts involved in every instance so that any violation of 
these provisions will be avoided.


Sec. 302-17.11  Violation of service agreement.

    In the event the employee violates the terms of the service 
agreement required under Sec. 302-2.13, no part of the RIT allowance or 
the WTA will be paid, and any amounts paid prior to such violation 
shall be a debt due the United States until they are repaid by the 
employee.


Sec. 302-17.12  Advance of funds.

    No advance of funds is authorized in connection with the allowance 
provided in this part.


Sec. 302-17.13  Source references.

    The following references or publications have been used as source 
material for this part.
    (a) Internal Revenue Code (IRC), section 164(a)(3) (26 U.S.C. 
164(a)(3)) pertaining to the deductibility of State and local income 
taxes, and section 217 (26 U.S.C. 217), pertaining to moving expenses.
    (b) Internal Revenue Service Publication 521, ``Moving Expenses.''
    (c) Internal Revenue Service, Circular E, ``Employer's Tax Guide.''
    (d) Department of the Treasury Financial Manual, TFM 3-5000.
    (e) 31 CFR 215.2 (5 U.S.C. 5516, 5517, and 5520).

Appendix A to Part 302-17--Federal Tax Tables for RIT Allowance

                                   Federal Marginal Tax Rates by Earned Income Level and Filing Status--Tax Year 2000
[The following table is to be used to determine the Federal marginal tax rate for Year 1 for computation of the RIT allowance as prescribed in Sec.  302-
                          11.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar year 2000.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Single taxpayer         Heads of household      Married filing jointly/       Married filing
                                                 ----------------------------------------------------   qualifying widows and          separately
                                                                                                              widowers         -------------------------
           Marginal tax rate (percent)                           But not                   But not   --------------------------
                                                      Over         over         Over         over                    But not        Over       But not
                                                                                                          Over         over                      over
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $7,417      $34,638      $13,375      $49,734      $17,421      $63,297       $8,603      $31,342
28..............................................       34,638       75,764       49,734      113,413       63,297      131,334       31,342       63,448
31..............................................       75,764      148,990      113,413      180,742      131,334      189,826       63,448       99,219
36..............................................      148,990      306,111      180,742      326,450      189,826      315,957       99,219      170,524
39.6............................................      306,111  ...........      326,450  ...........      315,957  ...........      170,524  ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 58254]]

Appendix B to Part 302-17--State Tax Tables for RIT Allowance

                         State Marginal Tax Rates by Earned Income Level--Tax Year 2000
     [The following table is to be used to determine the State marginal tax rates for calculation of the RIT
  allowance as prescribed in Sec.  302-11.8(e)(2). This table is to be used for employees who received covered
                               taxable reimbursements during calendar year 2000.]
----------------------------------------------------------------------------------------------------------------
       Marginal tax rates (stated in percents) for the earned income amounts specified in each column 1, 2
-----------------------------------------------------------------------------------------------------------------
                                                                                                     $75,000 and
              State (or district)                $20,000-$24,999  $25,000-$49,999  $50,000-$74,999      over
----------------------------------------------------------------------------------------------------------------
Alabama........................................           5                5                5              5
Alaska.........................................           0                0                0              0
Arizona........................................           2.87             3.2              3.74           5.04
Arkansas.......................................           4.5              7                7              7
If single status \3\...........................           6                7                7              7
California.....................................           2                4                8              9.3
If single status \3\...........................           4                8                8              9.3
Colorado.......................................           4.75             4.75             4.75           4.75
Connecticut....................................           4.5              4.5              4.5            4.5
Delaware.......................................           5.2              5.95             6.4            6.4
District of Columbia...........................           8                9.5              9.5            9.5
Florida........................................           0                0                0              0
Georgia........................................           6                6                6              6
Hawaii.........................................           7.2              8.2              8.75           8.75
If single status \3\...........................           8.2              8.75             8.75           8.75
Idaho..........................................           7.8              8.2              8.2            8.2
Illinois.......................................           3                3                3              3
Indiana........................................           3.4              3.4              3.4            3.4
Iowa...........................................           6.48             7.92             8.98           8.98
If single status \3\...........................           6.8              7.92             8.98           8.98
Kansas.........................................           3.5              6.25             6.25           6.45
If single status \3\...........................           6.25             6.45             6.45           6.45
Kentucky.......................................           6                6                6              6
Louisiana......................................           2                4                4              6
If single status \3\...........................           4                4                6              6
Maine..........................................           4.5              7                8.5            8.5
If single status \3\...........................           7                8.5              8.5            8.5
Maryland.......................................           4.85             4.85             4.85           4.85
Massachusetts..................................           5.95             5.95             5.95           5.95
Michigan.......................................           4.4              4.4              4.4            4.4
Minnesota......................................           5.5              7.25             7.25           8
If single status \3\...........................           7.25             7.25             8              8
Mississippi....................................           5                5                5              5
Missouri.......................................           6                6                6              6
Montana........................................           9               10               11             11
Nebraska.......................................           3.65             5.24             6.99           6.99
If single status \3\...........................           5.24             6.99             6.99           6.99
Nevada.........................................           0                0                0              0
New Hampshire..................................           0                0                0              0
New Jersey.....................................           1.4              1.75             2.45           6.37
If single status \3\...........................           1.4              3.5              5.525          6.37
New Mexico.....................................           3.2              6                7.1            8.2
If single status \3\...........................           6                7.1              7.9            8.2
New York.......................................           4                5.25             6.85           6.85
If single status \3\...........................           5.25             6.85             6.85           6.85
North Carolina.................................           6                7                7              7.75
North Dakota...................................           6.67             9.33            12             12
If single status \3\...........................           8               10.67            12             12
Ohio...........................................           3.580            4.295            5.012          7.228
Oklahoma.......................................           5                6.75             6.75           6.75
If single status \3\...........................           6.75             6.75             6.75           6.75
Oregon.........................................           9                9                9              9
Pennsylvania...................................           2.8              2.8              2.8            2.8
Rhode Island \4\...............................          26.5             26.5             26.5           26.5
South Carolina.................................           7                7                7              7
South Dakota...................................           0                0                0              0
Tennessee......................................           0                0                0              0
Texas..........................................           0                0                0              0
Utah...........................................           7                7                7              7
Vermont \5\....................................          25               25               25             25
Virginia.......................................           5                5.75             5.75           5.75
Washington.....................................           0                0                0              0
West Virginia..................................           4                4.5              6              6.5
Wisconsin......................................           6.37             6.77             6.77           6.77

[[Page 58255]]

 
Wyoming........................................           0                0                0             0
----------------------------------------------------------------------------------------------------------------
\1\ Earned income amounts that fall between the income brackets shown in this table (e.g., $24,999.45,
  $49,999.75) should be rounded to the nearest dollar to determine the marginal tax rate to be used in
  calculating the RIT allowance.
\2\ If the earned income amount is less than the lowest income bracket shown in this table, the employing agency
  shall establish an appropriate marginal tax rate as provided in Sec.  302-11.8(e)(2)(ii).
\3\ This rate applies only to those individuals certifying that they will file under a single status within the
  States where they will pay income taxes. All other taxpayers, regardless of filing status, will use the other
  rate shown.
\4\ The income tax rate for Rhode Island is 26.5 percent of Federal income tax liability for all employees.
  Rates shown as a percent of Federal income tax liability must be converted to a percent of income as provided
  in Sec.  302-11.8(e)(2)(iii).
\5\ The income tax rate for Vermont is 25 percent of Federal income tax liability for all employees. Rates shown
  as a percent of Federal income tax liability must be converted to a percent of income as provided in Sec.  302-
  11.8(e)(2)(iii).

Appendix C to Part 302-17--Federal Tables for RIT Allowance--Year 2

                                   Federal Marginal Tax Rates by Earned Income Level and Filing Status--Tax Year 2001
[The following table is to be used to determine the Federal marginal tax rate for Year 2 for computation of the RIT allowance as prescribed in Sec.  302-
 11.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999 or
                                                                         2000.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Single taxpayer         Heads of households     Married Filing jointly/       Married filing
                                                 ----------------------------------------------------    qulifying widows &            separately
                                                                                                              widowers         -------------------------
          Marginal tax rate  (percent)                           But not                   But not   --------------------------
                                                      Over         over         Over         over                    But not        Over       But not
                                                                                                          Over         over                      over
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $7,582      $35,363      $13,905      $51,016      $18,061      $65,011       $8,742      $32,028
28..............................................       35,363       77,472       51,016      116,612       65,011      133,818       32,028       65,470
31..............................................       77,472      154,524      116,612      180,660      133,818      193,566       65,470       99,363
36..............................................      154,524      317,548      180,660      324,522      193,566      323,455       99,363      169,100
39.6............................................      317,548  ...........      324,522  ...........      323,455  ...........      169,100  ...........
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Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance

                      Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 1998
  [The following table is to be used to determine the Puerto Rico marginal tax rate for computation of the RIT
                              allowance as prescribed in Sec.  302-11.8(e)(4)(i).]
----------------------------------------------------------------------------------------------------------------
                                                                Single filing status     Any other filing status
                                                             ---------------------------------------------------
                Marginal tax rate  (percent)                                 But not                   But not
                                                                  Over         over         Over         over
----------------------------------------------------------------------------------------------------------------
12..........................................................  ...........  ...........  ...........      $25,000
18..........................................................  ...........      $25,000  ...........  ...........
31..........................................................      $25,000       50,000      $25,000       50,000
33..........................................................       50,000  ...........       50,000  ...........
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    Dated: October 30, 2001.
Stephen A. Perry,
Administrator of General Services.
[FR Doc. 01-27764 Filed 11-19-01; 8:45 am]
BILLING CODE 6820-34-P