1. (a) Eligible costs for a school building project shall include:

   1. (1) The reasonable costs of acquiring, constructing, altering or renovating buildings or structures;
   2. (2) site preparation and development costs incurred on and for the school site;
   3. (3) capital expenditures to equip and furnish such school buildings or school site;
   4. (4) architectural, engineering, construction management and legal fees ordinarily and reasonably necessary to the costs described in subdivisions (1) to (3), inclusive, of this subsection;
   5. (5) costs for capital improvements to enhance energy systems, fenestrations, or fuel storage equipment;
   6. (6) bond issue costs incidental to financing the costs described in this subsection, including bond advertising, preparation and printing of official statements and bond execution costs; and (7) site acquisition costs as described in subsection (b) of this section.

2. (b) Acquisition Costs

   1. (1) Site Acquisition. Site acquisition costs shall include the actual cost of acquiring a site for a school building project plus legal fees and other reasonable incidental costs necessary to such acquisition. Eligible site acquisition costs shall not exceed the higher of two independent appraisals of such site and shall not include the costs of a site or portion of a site which causes the total site to exceed:

      1. (A) The number of acres equal to the highest projected enrollment for the eight year period from the date of application divided by one hundred plus (B) ten additional acres if the school building project is an elementary school, or fifteen additional acres if the school building project is a middle school, or twenty additional acres if the school building project is a high school.
   2. (2) Building Acquisition. The eligible costs for acquisition of a building shall not exceed the higher of two independent appraisals of the building.
3. (c) Construction Costs. For applications submitted on and after July 1, 2026, eligible construction costs for school building projects shall not exceed the product of (1) the lesser of (A) the total square footage of the school building project or (B) the sum of the state standard space specification calculated pursuant to section 10-287c-29 of the Regulations of Connecticut State Agencies and any square footage excluded pursuant to section 10-287c-29(c)(2) of the Regulations of Connecticut State Agencies, and (2) the allowable cost per square foot for the building type as determined in section 10-287c-30 of the Regulations of Connecticut State Agencies. For school building projects that extend, replace, renovate or alter an existing building, the total square footage used to calculate the maximum construction costs under this subsection shall be limited to that portion of the building so extended, replaced, renovated or altered, as determined by the Commissioner.

4. (d) Ineligible Costs. Eligible costs shall not include the following:

   1. (1) For applications submitted on and after July 1, 2026, construction costs that exceed the amount calculated pursuant to subsection (c) of this section;
   2. (2) Any costs not adequately supported by contemporaneous, accurate and complete records;
   3. (3) Costs for routine repair, maintenance and replacement, such as service, equipment or maintenance contracts; maintenance, repair, repainting, redecorating or relocation of buildings, facilities, systems, equipment or the school site; and replacement of typical maintenance items or stolen, broken or vandalized property;
   4. (4) Costs for off-site improvements including road construction or utility extensions;
   5. (5) Feasibility studies;
   6. (6) Textbooks, library books, and other general supplies and media;
   7. (7) Computer software;
   8. (8) Lease of facilities other than in accordance with section 10-286(a)(9) of the Connecticut General Statutes;
   9. (9) Salaries of in-house administrative staff, including legal or educational staff employed by the local board of education or municipality or contract payments made to supplement board or municipal staff;
   10. (10) Interest on bonds or bond anticipation notes;
   11. (11) Sales tax, local building permits and fees, and the State of Connecticut Education Fee; and (12) Laboratory gas piping systems.

(Effective March 18, 2026)