Expenses related to the purchase of equipment – an article of non-expendable, tangible property having a useful life of more than one year and an acquisition cost which equals the lesser of: the capitalization level established by the government unit for financial statement purposes or $5,000. Capital expenses do not include operating expenses that are eligible to use capital funds.

Examples of eligible capital expenses include: computer equipment; software that supports general office functions, accounting, scheduling, vehicle maintenance, etc.; bus or rail stations; ferry terminals; transfer centers; park-and-ride facilities; administration, maintenance, or storage facilities; rolling stock (revenue vehicles); the cost of one set of replacement tires; fare revenue collection equipment; service, supervisory or other vehicles other than revenue vehicles; and furniture, etc.