In the Commonwealth of Virginia, a capital project is currently defined as one that creates at least 5,000 gross square feet of building space, or exceeds $2 million in total project cost. Below these thresholds, a project may be treated as a non-capital project or an operating expense. In comprehensive terms, a "capital project" refers to (1) Acquisition of real property; (2) New construction projects with a total project cost exceeding $2,000,000 for institutions of higher education; (3) Improvements, renovations, repairs, replacement, maintenance, or combination projects for a single building with a total project cost exceeding $2,000,000 for institutions of higher education; and (4) Umbrella projects. Special rules apply to energy performance contracts/ESCOs and capital leases.
|Total Project Cost||<$2M||>$2M|
|Square Footage||<5,000 sq ft||> 5,000 sq ft|