# Capital Leases
> **Federal Transit Administration** · Final rule. · Published 1996-05-17 · 61 FR 25088
## Document
- **Document number:** 96-12341
- **Category:** transit
- **Sub-agency:** Federal Transit Administration
- **Federal Register citation:** 61 FR 25088
- **CFR reference:** 49 CFR 639
- **Publication date:** 1996-05-17
- **DOT docket:** Docket No. FTA-96-1031
## Abstract

This final rule amends ``Capital Leases'' to treat maintenance costs under a commercial lease of a capital asset as an eligible capital expense. ``Capital Leases'' implements section 308 of the Surface Transportation and Uniform Relocation Assistance Act of 1987, which allows capital grants under the Federal transit laws to be used for leasing facilities or equipment if a lease is more cost effective than purchase or construction of such items. FTA believes that this amendment is consistent with industry practice and with recent Federal initiatives to streamline federally assisted procurement practices and to ensure that Federal investment in the nation's transportation infrastructure is properly protected.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1996/05/17/96-12341/capital-leases)
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