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incurs the costs. (e) For the purposes of (a)(3) of this section, costs of transportation, food, clothing, school supplies, personal grooming, and personal allowances for children for whom the department has assumed responsibility under AS 47.10 are allowable costs. (f) For the purposes of (a)(3) of this section, the department will classify costs of travel as follows:

(1) Costs of first class air accommodations are not allowable unless less expensive accommodations are not reasonably available, or unless the costs of alternate travel arrangements would exceed those of first class air accommodations.

(2) Costs of travel between an employee’s residence and the facility are not allowable.

(3) Actual transportation costs, and per diem costs in the amount that the State of Alaska would pay for state employees under the State Administrative Manual, for employees, children for whom the state has assumed responsibility under AS 47.10, and members of the grantee’s governing board, are allowable costs; except that, in its discretion, the department will allow actual costs of moderately priced available accommodations. (g) For the purposes of (a)(3) of this section, the department will classify costs of certain current expenses for land, buildings and improvements, fixtures, and equipment as follows:

(1) Costs of utilities such as heating fuel, water, gas, electricity, sewerage, and refuse removal, are allowable costs.

(2) Costs of renting land, buildings, and equipment and other personal property are allowable costs.

(3) Costs of a repair or costs of maintenance, including costs of maintenance of roads, buildings, equipment and other personal property, and costs of maintenance agreements for equipment, are allowable only if

(A) the repair or maintenance does not appreciably prolong the useful life of the item;

(B) the repairs or maintenance do not significantly increase the permanent value of the item; and

(C) the repair or maintenance does not exceed $5,000.

(4) Costs of real or personal property taxes are allowable only if the department approves payment of the costs and the grantee cannot legally avoid payment of the taxes. (h) For the purposes of (a)(3) of this section, the department will classify depreciation and use costs of building, land, land improvements, and equipment as described in this subsection.

(1) Depreciation costs of land are not allowable costs.