what is a capital improvement 
a capital improvement is the addition of a permanent structural change or the restoration of some aspect of a property that will either enhance the property s overall value prolong its useful life or adapt it to new uses individuals businesses and cities can make capital improvements to the property they own some capital improvements are given favorable tax treatment and may be exempted from sales tax in certain jurisdictions in a business or corporate finance this process is similar to investments in capital expenditures capex 