§ 11-217
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/md/tax-general/11-217A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§11–217.
(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.