What is Capital Improvement?

In general, a capital improvement is a one-time expenditure for physical assets such as buildings, land, construction, landscaping or major equipment.

How Does Capital Improvement Work?

Let's say Town XYZ wants to refurbish ABC Elementary School. It intends to pursue several capital improvements: Build a new wing for the fifth-graders, replace the playground, install better security systems, and redo all the plumbing.

Why Does Capital Improvement Matter?

This term usually refers to government or municipal projects. Often, the goal is to improve the quality of life in the town, attract more tax-paying business and comply with new building codes or laws.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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