Article - Tax - General
(a) (1) In this section, “research and development” means:
(i) basic and applied research in the sciences and engineering; and
(ii) the design, development, and governmentally required pre-market testing of prototypes, products, and processes.
(2) “Research and development” does not include:
(i) market research;
(ii) research in the social sciences or psychology and other nontechnical activities;
(iii) routine product testing;
(iv) sales services; or
(v) technical and nontechnical services.
(b) The sales and use tax does not apply to a sale of tangible personal property for use or consumption in research and development.