Equipment Capitalization

A February 1997 revision to the indirect cost rate agreement raised the equipment capitalization threshold from $500 to $5,000. As a result, equipment in the range of $500 to $4,999 (hereinafter referred to as non-capital equipment) should be budgeted into and expensed against one of two new non-capital equipment object codes (3560 and 3570). Indirect cost will be assessed against non-capital equipment purchases. Implementation guidelines were published and distributed to the research community. Copies may be obtained by contacting the Office of Sponsored Research (OSR).