Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department Of Taxation
Chapter 210. Retail Sales and Use Tax
2/25/2021

23VAC10-210-762. Innovative high technology industries; application of research and development exemptions generally.

The exemption available for research activities is explained in detail at 23VAC10-210-3070 through 23VAC10-210-3074. To qualify for the exemption, tangible personal property must be used directly and exclusively in basic research or research and developmental activities in the experimental or laboratory sense. Generally, a research activity which has as its goal the advancement of existing knowledge or technology, the development of new uses for existing products, technology or processes, or the improvement of existing products, technology or processes will be entitled to the exemption. Thus, most research into innovative technologies or fields will qualify for the research exemption. However, the production of management studies and similar projects does not constitute exempt research under 23VAC10-210-3070 through 23VAC10-210-3074 as such projects do not involve experimental or laboratory research.

Statutory Authority

§§ 58.1-203, 58.1-609.5(6) and 58.1-609.5(7) of the Code of Virginia.

Historical Notes

Derived from VR630-10-49.2 § 3, eff. March 15, 1987, retroactive to December 1, 1986.

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