1. (a)

   1. (1) In this section, “research and development” means:

      1. (i) basic and applied research in the sciences and engineering; and
      2. (ii) the design, development, and governmentally required pre-market testing of prototypes, products, and processes.

   2. (2) “Research and development” does not include:

      1. (i) market research;
      2. (ii) research in the social sciences or psychology and other nontechnical activities;
      3. (iii) routine product testing;
      4. (iv) sales services; or
      5. (v) technical and nontechnical services.
2. (b) The sales and use tax does not apply to a sale of tangible personal property, a digital code, or a digital product for use or consumption in research and development.

Added as Tax-General § 11-216 by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Renumbered as Tax-General § 11-217 by Acts 1988, c. 337, § 1. Amended by Acts 1989, c. 696; Acts 1990, c. 6, § 2; Acts 1993, c. 401; Acts 2021, c. 38, § 1, eff. March 14, 2021; Acts 2021, c. 669, § 1, eff. May 30, 2021.

Formerly Art. 81, §§ 324, 326, 375.