Section 6211.88. Start-up costs

(a) Start-up costs shall be capitalized as deferred charges and amortized over a minimum of 5 years.

(b) Start-up costs include, but are not limited to, administrative and nursing salaries, utility costs, taxes, insurance, mortgage and other interest, employe training costs, repairs and maintenance, housekeeping and other allowable costs incident to the start-up period.

(c) Costs that are properly identifiable as organization costs or capitalizable as construction costs shall be classified as such and excluded from start-up costs.

(d) Costs related to changes in ownership as defined in § 6211.79(m) (relating to depreciation allowance) are not allowable as start-up costs.

(e) Amortized start-up costs shall be shown on the Depreciation and Amortization Schedule that is a part of the budget submission or the cost report. The costs shall be documented on the budget narrative or the cost report. A 60-month amortization period is allowed for these costs.

The provisions of this § 6211.88 adopted February 10, 1995, effective July 1, 1994, 25 Pa.B. 536.