HRS § 237-26 — Exemption of certain scientific contracts with the United States


§237-26 Exemption of certain scientific
contracts with the United States. (a) Any provision of law to the
contrary notwithstanding, there shall be exempted from the measure of the taxes
imposed by chapter 237, all of the gross proceeds derived by a contractor or
subcontractor arising from the performance of any scientific work as defined in
subsection (b), under a contract or subcontract entered into with the United
States (including any agency or instrumentality thereof but not including
national banks), and all of the gross proceeds derived from the sale of
tangible personal property by a seller of such tangible personal property to
such contractor or subcontractor; provided the exemption herein shall apply
only to such tangible personal property which is to be affixed to, or to become
a physical, integral part of the scientific facility, or which is to be
entirely consumed during the performance of the service required by the
contract or subcontract.
(b) For purposes of this section, "scientific
work" is work involving primarily the research and development for, or the
design, manufacture, instrumentation, installation, maintenance, or operation
of aerospace, agricultural, astronomical, biomedical, electronic, geophysical,
oceanographic, test range, or other scientific facilities. Maintenance or
operation, for purposes of this section, shall include housekeeping functions
in providing certain nonscientific logistic and support services.