Updated January 2018
Discounts are calculated and reported to USAC on the FCC Form 471.
You will update the entity information in your organization's E-rate Productivity Center (EPC) account and the system will populate the appropriate data in your form and calculate your Category One (C1) and Category Two (C2) discounts as detailed below.
Following is information on how to calculate discounts for different types of entities:
In general, the school district calculation is the basis for discount calculations for all types of entities. To calculate the discount for a school district:
Each school and each eligible non-instructional facility (NIF) uses the school district discount. If only one school in the district receives a service, or that service is shared among all or a subset of schools in the district, the discount does not change.
An individual school that is part of a school district does not calculate its discount based on its own student population, but instead uses the discount calculated for the school district.
An independent school - a school not affiliated financially or operationally with a school district - would follow the school district calculation method above, using its student population numbers and the urban or rural status of its physical location.
To calculate the discount for a library system:
Each library branch and each eligible library NIF uses the discount for the library system's main branch or main administrative office. If only one library branch in the library system receives a service, or that service is shared among all or a subset of library branches in the library system, the discount does not change.
An independent library acts as its own main branch and would follow the library system calculation method above.
To calculate the discount for a consortium or statewide application:
Keep the following in mind:
A non-instructional facility (NIF) generally is a school building without classrooms or a library building without public areas. A school NIF that does contain classrooms is still treated as a NIF. When eligible for support, school NIFs receive the same discount as the school district and library NIFs receive the same discount as the library system.
The discount for a NIF is derived from the school district or library system regardless of the physical location of the building. NIFs are not counted in the district or system’s urban/rural determination.
You must first determine whether you know the population of students that will attend the school. If you know which students will attend the new school, calculate the discount for that individual school as described above.
If you do not know which students will attend the new school, you can provide a reasonable estimate of the number of students who will be attending that school during a particular funding year and seek support for the estimated number of students who will be attending.
Once the student population is known, you may update the discount calculation based on the actual student population during Program Integrity Assurance (PIA) review of your application. In order for your discount calculation to be updated with the actual student population, you must notify PIA before your Funding Commitment Decision Letter (FCDL) is issued.
For a new library, calculate the discount as described above under library branch using the student information from the public school district in which the main branch of the library is (or will be) located.
You must first determine if the students and/or facilities in these programs are eligible in your state using the Eligibility Table for Non-Traditional Education. If they are eligible, calculate the discount for an individual school as described above. Head Start students that meet the age requirement are considered eligible for the NSLP.
For schools that either do not participate in NSLP or choose not to use NSLP participation numbers, there are certain acceptable alternative discount mechanisms that can be used to calculate an equivalent measure for the percentage of students eligible for NSLP. In all cases, these mechanisms must be based on or not exceed the same measure of poverty used by the NSLP.
As above, applicants using an alternative discount mechanism must maintain accurate and complete documentation of the calculations that support their funding requests. Remember that documentation must be retained for at least ten years after the last date to receive service.