Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.077 - EXEMPTION FOR RESEARCH AND DEVELOPMENT AT INL

Current through August 31, 2023
Section
				63-3622BB, Idaho Code
01.
Exclusive Financing Exemption Under
			 Section 63-3622BB(1),
			 Idaho Code
. The purchase of certain tangible personal property used in
			 connection with certain activities at the Idaho National Laboratory (INL) is
			 exempt from sales and use tax. To qualify for this exemption, the property
			 needs to be tangible personal property primarily or directly used or consumed
			 in research, development, experimental and testing activities, exclusively
			 financed by the United States Government. (3-31-22)
a. Qualifying Activity. Research,
			 development, experimental, and testing activity means any activity of an
			 original investigation, for the advancement of scientific knowledge in a field
			 of laboratory science, engineering or technology and does not have an actual
			 commercial application. (3-31-22)
b. Real Property. The exemption does not
			 apply to real property or to tangible personal property which will become
			 improvements or fixtures to real property. See Rules
			 012 and
			 067 of these rules.
			 (3-31-22)
c. Incidental Use of
			 Property. This exemption does not extend to the incidental use of any tangible
			 personal property which fails to meet the test of primary or direct use or
			 consumption. (3-31-22)
i. Areas of support
			 which are considered incidental include: communications equipment; office
			 equipment and supplies; janitorial equipment and supplies; training equipment
			 and supplies; dosimetry or radiation monitoring equipment which lacks the
			 capability of giving an immediate indication and would not result in an
			 immediate evacuation of personnel or shutdown of equipment; subscriptions or
			 technical manuals which provide technology not primarily used or directly
			 connected to the research activity; and hot and cold laundry operations.
			 (3-31-22)
ii. Materials of common
			 support which are considered incidental include: clothing for weather
			 protection or of a reusable nature; hand tools which are not subject to
			 contamination at the time of initial use; protective coverings which are
			 protection from other than radiation or are of a reusable nature; and all
			 safety equipment and supplies which do not protect from direct radiation
			 exposure. (3-31-22)
d.
			 Property Directly Used or Consumed. Tangible personal property primarily or
			 directly used or consumed in a research and development activity to perform
			 quality assurance on research equipment is tax exempt. Items of a general
			 support nature, such as coveralls, are taxable. (3-31-22)
e. Parts for Equipment. The use of tangible
			 personal property which becomes a component part of research equipment being
			 calibrated within a calibration lab is tax exempt; whereas, the use of parts
			 and equipment in calibrating or for the repair of other maintenance equipment
			 is taxable. (3-31-22)
f.
			 Radioactive Waste. The initial containment or storage of radioactive waste is
			 an exempt use. Any further processing or transporting of such waste not
			 relating to a research and development activity is a taxable use.
			 (3-31-22)
g. Motor Vehicles. The
			 purchase of any motor vehicle licensed or required to be licensed by the laws
			 of this state is taxable. (3-31-22)
h. Agreements with Contractors. The
			 Commission may enter into agreements with contractors engaged in research at
			 the INL prescribing methods by which the contractor or contractors may accrue
			 use tax based on the accounting procedures required by the U.S. Department of
			 Energy. (3-31-22)