1. Glossary

capital expenditures

Capital expenditures are not eligible for grants from the Canada Council unless explicitly stated as eligible in the component Guidelines.

Capital expenditures pay for items that will have value after the current projects are completed. Typically, these are relatively expensive items that can be used for several years, such as:  

  • Computers, printers and technology equipment
  • Artistic tools and equipment
  • Office equipment and furniture
  • Facility and technical equipment
  • Land, buildings and renovations of leased spaces
  • Vehicles

Generally, basic computer software (e.g. most applications used in office environments) is not considered a capital expenditure because they are frequently updated and replaced. However, digital tools and applications that require a significant investment may be capitalized.

There are specific accounting rules for determining if and how to capitalize purchases. For more detailed information, please speak with an accountant.

[related definitions: Operating Costs, Direct Project Costs]