WILLIAM DONALD SCHAEFER, Governor                         Ch. 402

(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; OR

(VI)   RESEARCH AND DEVELOPMENT OF A PUBLIC UTILITY.

(B) TO THE EXTENT AUTHORIZED BY LAW BY THE GOVERNING BODY OF A
MUNICIPAL CORPORATION OR COUNTY, MACHINERY, EQUIPMENT, MATERIALS,
AND SUPPLIES CONSUMED IN OR USED PRIMARILY IN RESEARCH AND
DEVELOPMENT ARE EXEMPT, IN WHOLE OR IN PART, FROM VALUATION AND
PERSONAL PROPERTY TAX.

(B) THE GOVERNING BODY OF A MUNICIPAL CORPORATION OR COUNTY
MAY GRANT, BY LAW, A PROPERTY TAX CREDIT AGAINST THE COUNTY OR
MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON MACHINERY, EQUIPMENT,
MATERIALS, AND SUPPLIES:

(1) THAT ARE CONSUMED IN OR USED PRIMARILY IN RESEARCH AND
DEVELOPMENT; AND

(2) THE SALE OR USE OF WHICH IS EXEMPT FROM THE SALES AND USE
TAX UNDER § 11-210 OR § 11-217 OF THE TAX - GENERAL ARTICLE.

(C) THE AMOUNT OF CREDIT GRANTED UNDER THIS SECTION IS EQUAL TO
THE COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON THE
ASSESSMENT OF THE PROPERTY DESCRIBED IN SUBSECTION (B) OF THIS SECTION IN
EXCESS OF 25% OF THE ORIGINAL COST OF THE PROPERTY.

(C) (D) THE GOVERNING BODY OF A MUNICIPAL CORPORATION OR A
COUNTY THAT ENACTS A PARTIAL OR TOTAL EXEMPTION UNDER SUBSECTION (B)
©F CREDIT UNDER THIS SECTION SHALL SUBMIT A COPY OF THE LAW TO THE
DEPARTMENT.

(D) (E) IF THE DEPARTMENT RECEIVES A COPY OF THE LAW ON OR BEFORE
MARCH 1, THE EXEMPTION CREDIT SHALL BE EFFECTIVE FOR THE TAXABLE YEAR
IMMEDIATELY FOLLOWING PROPERTY PURCHASED OR TRANSFERRED INTO THE
STATE AFTER THE PRECEDING JANUARY 1.

(E) (F) THE DEPARTMENT SHALL ADOPT REGULATIONS TO IMPLEMENT
THE PROVISIONS OF THIS SECTION.

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