Capitalization Threshold Increase

Effective July 1, 2026, in accordance with guidance from the North Carolina Office of the State Controller, the capitalization threshold for equipment and certain capital assets has increased to $10,000.

What changed

• The capitalization threshold for equipment increased from $5,000 to $10,000

What did not change

• All other requirements remain the same
• Pilferable equipment (e.g., electronic devices) must still be tracked starting at $1,000 (strongly encouraged below this amount)
  • As a general guideline, items that are easily movable (e.g., can fit in a backpack) should be considered pilferable

What does this mean for you?

• For transactions on or after July 1, 2026:
  • When entering requisitions in 49er Mart (or other means), use a capital equipment account only if the unit cost of the equipment is $10,000 or greater

Resources (updated for this change)

• University Policy 601.15, Control and Management of University Equipment and Other Property
• Fixed Asset resources (guidebook, training slides, pilferable equipment template, FAQs)

These resources provide additional guidance, including how to determine whether equipment should be tracked.

Questions?

Contact FixedAssets@charlotte.edu