[Added by Bill No. 95-11[1]]
[1]
Editor's Note: Section 3 of this Bill provided that the tax credit established herein shall take effect for the taxable year beginning 7-1-1995, and for each taxable year thereafter, and shall apply to eligible personal property acquired or transferred into the county after 1-1-1995.
A. 
There is hereby established, pursuant to § 9-233 of the Tax Property Article of the Annotated Code of Maryland, a property tax credit against the county 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 Section 11-210 or Section 11-217 of the Tax-General Article of the Annotated Code of Maryland.
B. 
As used in this section, "research and development" means:
(1) 
Basic and applied research in the sciences and engineering; and
(2) 
The design, development, and governmentally required pre-market testing of prototypes, products, and processes.
C. 
As used in this section, "research and development" does not include:
(1) 
Market research;
(2) 
Research in the social sciences or psychology and other nontechnical activities;
(3) 
Route product testing;
(4) 
Sales services;
(5) 
Technical and nontechnical services; or
(6) 
Research and development of a public utility.
D. 
The amount of the tax credit granted hereby is equal to the county property tax imposed on the assessment of the property described in Subsection A, above, in excess of twenty-five percent (25%) of the original cost of the property.
E. 
Application for the tax credit established herein shall be made in the manner prescribed by regulations adopted by the Department of Assessments and Taxation of the State of Maryland.