As of November 11, 2012, the PSUPedia and its affiliated wikis have made the transition to read-only mode. While edits can no longer be made, we hope you will continue to enjoy the data collected by the community for years to come!
From The PSUPedia
This status effect knocks out the character. An incapacitated character loses all HP and falls down unconscious. During this time, the character will not be able to perform any functions including moving or using items. The incapacitated character is prompted to choose between waiting to be revived or returning to the departure lobby. Returning to the lobby decreases the overall mission score. Incapacitated enemies cannot be revived.
Status levels only affect incapacitate's infliction rate. Status levels do not affect incapacitate's effect.