§ 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, a digital code, or a digital product for use or consumption in research and development.