US Laws, Codes, Statutes & Cases

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 36
                                  SALES TAX
    63-3622RR.  RESEARCH AND DEVELOPMENT. (1) There is exempted from the taxes
imposed by this chapter, the lease, rental, purchase, sale at retail, storage,
use or other consumption in this state of tangible personal property which is
primarily used in research and development activities.
    (2)  "Research and development" means an activity which is:
    (a)  Designed to advance existing knowledge or capability in the field of
    science or technology, the development of new products, materials,
    technologies or processes, including new uses for or improvements to
    existing products, materials, technologies or processes; and
    (b)  Related to the development, design, manufacture, processing,
    production or fabrication of:
         (i)   A product or potential product which is tangible personal
         property; or
         (ii)  Machinery, materials or components utilized or potentially
         utilized in the development, design, manufacture, processing,
         production or fabrication of a product or potential product which is
         tangible personal property.