In a paragraph list, do not capitalize the first word of an item unless each item in the list is a complete sentence or an item begins with a proper noun:

In your documentation, please include (a) a cost summary,

(b) a program summary, and (c) Baldwin's sources of rates. 

but 

In an emergency, remember to observe the following

procedures: (1) Call the security hot-line. (2) Close all

windows and doors. (3) Wait for help to arrive. 

In a displayed list, capitalize the first word of each item:

• Direct costs
• Overhead costs
• Profit or fee

EXCEPTION: If listed items complete the thought begun in the introductory sentence, do not capitalize the first word of the item:

Our profitability can be assured by

1. lowering our overhead,
2. reducing the amount of rework activity, and
3. instituting a program of planning and follow-up.