The uniform capitalization rules apply to all business enterprises that meet the criteria for implementation(including sole proprietorship, partnership, and corporation) and provide guidelines with respect to capitalization goals or expensing certain cost.

前三年平均总收入2600万美元或以下的企业不受统一资本化规则的约束；

Cost requirement required to be capitalized:

Direct material, Direct labor( compensation, vacation pay, and payroll taxes)

Applicable indirect cost(factory overhead, utilities, warehousing cost, repairs, maintenance)

Indirect labor(supervisory)

Rent, storage, depreciation and amortization, insurance, pension contributions, engineering and design, repacking, spoilage and scrap, and administrative supplies.

Cost not required to be capitalized

Selling, advertising, and marking expenses, certain general and administrative expenses, research, and officer compensation not attributed to product service