To record payment for improvements made to a leased building. Total cost must be equal to or greater than $100,000.

Expenditure code 7344 includes, but is NOT limited to:

• Remodeling (state leased buildings)

• This code is used to record improvements or additions that will revert to the lessor at the expiration of the lease.
• Moveable equipment or office furniture that is not attached to the leased property is not considered a leasehold improvement.
• Capitalized leasehold improvements are amortized (depreciated) over the shorter of the remaining lease term or the useful life of the improvement.
• This code should be used for improvements made by agencies occupying TFC leased buildings.

Please refer to AG Opinion JC-170 and Art. VII, Sec. 18(i) of the Texas Constitution for information on certain restrictions on construction and related expenditures with GR and GR-dedicated funds by Institutions of Higher Education.

Specific definitions for capitalized, controlled and expensed asset classifications are located in the SPA Process Users Guide.