Research And Development

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.