# Tax - General (GTG)

## Title 11. Sales and Use Tax

### Subtitle 2. Exemptions

#### Section 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.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)