TaxGuided
United States IRC sections

Statute section

IRC section 263A

Capitalization and inclusion in inventory costs of certain expenses (UNICAP)

Country

United States

Section

263A

Updated

2026-05-20

Operative text

Section 263A (UNICAP) generally requires producers and resellers above a gross-receipts threshold to capitalize direct and certain indirect costs related to property produced or held for resale. The TCJA raised the gross-receipts threshold for the small-business exception to $25 million (indexed), simplifying UNICAP for many smaller taxpayers.

Amendment history

2017-12-22

Pub. L. 115-97

TCJA raised the gross-receipts threshold for the small-business UNICAP exception.

Cross-references

26 U.S.C. 47126 U.S.C. 263

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