Section 4-7.2-35. Research and development business; license tax rate.
A. Every person engaged in the business of research and development, designated as principal or prime contractor receiving identifiable federal appropriations as defined in Subsection C of this Section shall pay an annual license tax of Three Cents for each One Hundred Dollars of such research and development gross receipts.
B. Every person engaged in the business of research and development other than those described in Subsection C of this Section shall pay an annual license tax of Thirty-one Cents for each One Hundred Dollars of such research and development gross receipts.
C. For the purpose of this article, identifiable federal appropriations shall mean federal funds received for research and development services as defined in the Federal Acquisition Regulations ("FAR") by 48 C.F.R. § 31.205-18(a) for research and development in the areas of (i) computer and electronic systems, (ii) computer software, (iii) applied sciences, (iv) economic and social sciences and (v) electronic and physical sciences.
D. Every person receiving identifiable federal appropriations for research and development who qualify for license taxation under Subsection C of this Section shall provide the required documentation to the Director of the Department of Tax Administration no later than March 1st each year confirming the applicability of Subsection C. Such documentation will be prescribed by the Director and shall show that (i) the person is the principal or prime contractor, and (ii) that all gross receipts subject to taxation under Subsection C are federal funds received in accordance with all terms and conditions prescribed by the provisions of this Section.
E. The provisions of Subsection C of this Section shall not apply in cases where documentation required by this Section is not submitted in the time and manner prescribed by the provisions of this Section.