Fellowship Grant Law and Legal Definition

According to 26 CFR 1.117-3 [Title 26 -- Internal Revenue; Chapter I -- Internal Revenue Service, Department of the Treasury; Subchapter A -- Income Tax], fellowship grant generally means “an amount paid or allowed to, or for the benefit of, an individual to aid him in the pursuit of study or research. The term includes the value of contributed services and accommodations and the amount of tuition, matriculation, and other fees which are furnished or remitted to an individual to aid him in the pursuit of study or research. The term also includes any amount received in the nature of a family allowance as a part of a fellowship grant. However, the term does not include any amount provided by an individual to aid a relative, friend, or other individual in the pursuit of study or research where the grantor is motivated by family or philanthropic considerations.”