In general, equipment purchased with E-rate discounts cannot be sold, resold, or transferred for money or any other thing of value.

There are two exceptions to this general rule:

1. If a school or library is closing – either temporarily or permanently – equipment purchased with E-rate funds can be transferred to another eligible entity. You must notify USAC of the transfer if the date of purchase of the equipment is less than three years ago.
2. After three years from the date of purchase, equipment purchased with E-rate funds can be transferred to another eligible entity. You are not required to notify USAC of the transfer.

For more information, see “Schools and Libraries News Brief.” October 24, 2008.