The document proposes a new method called the Voltage Improvement Factor (VIF) to optimize capacitor placement in distribution systems in order to improve voltage profiles. It applies the VIF method to the IEEE 15 bus test system by placing capacitors at buses 6, 3, 11, and 4, with capacities of 450, 150, 300, and 300 kVAr respectively. This optimized capacitor placement reduced losses by 50.71% and improved the minimum bus voltage from 0.9445 p.u. to 0.9694 p.u.