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accommodations and meals; or

(C) for a project that includes money under a federal grant to the grantee or federal contract with the grantee, the travel costs allowable under the federal grant. (i) If the grantee has a written travel policy that is more restrictive than the limitations set out in (h) of this section, the grantee may use grant money to pay no more for the travel expenses under (h) of this section than the amount that is allowed under the grantee’s policy. (j) A grantee may use grant money to pay tax expenses. However, these expenses may not include taxes from which the grantee is exempt. (k) Depreciation on buildings, renovations, and nonexpendable personal property not purchased with state money is allowable under this section, using the straight-line method to calculate depreciation. The useful life of assets must be determined by using the most recent applicable Internal Revenue Service table. The grantee must maintain any payment received under this section in a separate reserve account designed for the replacement of the asset when fully depreciated, or for the purchase of other assets in support of the grant project that have been approved by the department. (l) A grantee may use grant money to pay the following costs in support of the grant project only after receiving department approval for the cost:

(1) the cost of advertising and public-awareness activities;

(2) drug costs;

(3) the cost of legal services;

(4) the cost of routine and ancillary medical services on either an inpatient or outpatient basis for a recipient of services or an employee;

(5) salaries, wages, overtime, and fringe benefits paid to employees of the grant project, subject to (m) and (n) of this section;

(6) the cost of rental or true lease of facilities and equipment, subject to (o) of this section;

(7) the cost of altering or renovating a building if

(A) the grantee is not an individual;

(B) the building has a usable life consistent with the objectives of the grant project, is architecturally suitable for conversion, and conforms with federal statutes and regulations governing access by individuals with disabilities;

(C) the space involved will be occupied by the grant project or part of the grant project;

(D) the grantee secures a lease for the building for the grant period if the grantee