Section 76.42 - In-kind contributions(a) In-kind, cable-related contributions are "franchise fees" subject to the five percent cap set forth in 47 U.S.C. 542(b) . Such contributions, which count toward the five percent cap at their fair market value, include any non-monetary contributions related to the provision of cable service by a cable operator as a condition or requirement of a local franchise, including but not limited to: (1) Costs attributable to the provision of free or discounted cable service to public buildings, including buildings leased by or under control of the franchising authority;(2) Costs in support of public, educational, or governmental access facilities, with the exception of capital costs; and(3) Costs attributable to the construction of institutional networks.(b) In-kind, cable-related contributions do not include the costs of complying with build-out and customer service requirements. 84 FR 44750 , Aug. 27, 2019