@midnight_reaper said in Captured capitol player taking an enemy capitol:

In this case, Germany would take Russia’s money. This would enable Germany to produce units next turn if it controls a factory somewhere.

Germany cannot produce any units until it regains its capital, even though it now has IPCs. The captured IPCs would simply allow Germany to produce more units once its capital is recaptured.

Note that the reason that Germany can take the USSR’s IPCs under these circumstances is because these IPCs are captured, not earned as income.