Fixed Asset Capital Equipment Threshold is Changing

Changes are coming!

Capital Equipment Threshold Changing July 1, 2026

Effective July 1, 2026, UVA will update the capital equipment dollar threshold from $5,000 to $10,000. 

Other parts of the capital equipment definition will remain unchanged.

What’s changing: Equipment must now meet a $10,000 threshold to qualify as capital equipment.

This change is being made to align UVA policy with federal guidance, create greater consistency across regulatory requirements, and help streamline accounting, reporting, and compliance practices.

What you need to know

• Through June 30, 2026: Continue following the current capital equipment threshold, including the $5,000 threshold.
• On and after July 1, 2026: Requisitions submitted on or after this date should use a capital spend category only if the updated requirements are met.
• Administrators will no longer use capital spend categories for equipment purchases under $10,000.

Open purchase orders

Open or in-progress transactions at the time of the change will be reviewed by the Business Asset team. Any needed change orders or accounting updates will be handled by UVAFinance on behalf of units, with minimal impact to departments across Grounds.

A few reminders

• There will be no retroactive changes to existing assets.
• Current assets will continue to be depreciated on their original schedule.
• Current assets will still go through inventory until fully depreciated.

Note: UVA Health System follows its own fixed asset policy and is not impacted by this update.

If you have questions or need support, please contact AskFinance@virginia.edu.