Relating to: exempting persons engaged in certain contract research services from the sales and use tax. (FE)

SB 654 exempts companies providing contract research services from state sales tax. It defines these services as research conducted for clients that would qualify as "qualified research" under federal tax rules if done in-house by the client’s own staff. The bill specifically includes research funded between corporate group members and research paid for through contract research expenses. This policy change directly affects research service providers by removing a sales tax burden on their services.