Maryland Tax - General Section 11-217

      (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.