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2026 - 2027 I PY27 NH Fuel Assistance Program (FAP) Procedures Manual 28 Rent: Costs relating to the use of property that the applicant does not own such as cars, tools, equipment, and property are deductible.

Repairs: Minor costs relating to the repair of work-related property or equipment are deductible.

Supplies: The costs of incidental supplies and materials such as office supplies, tools, books, and professional equipment are deductible if they are normally used up within a year.

Taxes: Taxes relating to the cost of running a business or a profession are deductible, including sales, business profits, licenses, regulatory fees, state unemployment payments, corporate franchise taxes, user fees, and property taxes.

Travel: Normal expenses are deductible when traveling for business. Deductible expenses include airplane, bus, and train tickets, operating and maintaining vehicles (refer to the Car & Truck section), meals, lodging, and other ordinary and necessary expenses relating to business travel. Expenses that are lavish, extravagant, or for personal or vacation purposes cannot be deducted. Expenses for travel/commuting between home and office cannot be deducted.

Utilities: Normal costs associated with running an office or business are deductible, such as electricity, heating fuels, and telephone. Note: If a home office is used, only a cell phone used exclusively for business, a second phone line or actual long distance business phone calls are deductible.

Wages: Wages, salaries, bonuses, and gifts paid to employees, including anyone who is not a member of the household applying for the FAP, are deductible. In the case of household members on a payroll, be sure that their income is not counted twice.

Other: Bad business debts are deductible if there has been an actual loss of money or the amount of money to be paid was reported as income. Membership dues and subscriptions to professional, technical, or trade journals that deal with the applicant’s business are deductible. Legal and professional fees (i.e., accountants, lawyers, etc.) that are ordinary and necessary expenses of operating a business are deductible. Legal fees paid to acquire a business are not deductible. Penalties and fines resulting from the non-performance of a contract are deductible. However, fines and penalties resulting from criminal or legal action paid to any government agency are not deductible. The costs of medical insurance premiums are deductible at a 25 percent rate (i.e., $1,000 premium x 25% = $250 deduction). All deductions under the “Other” heading must be documented and have a schedule attached.