The State of Idaho has passed a law exempting property used for research and development from sales and use tax. Research and development is defined as “an activity designed to advance existing knowledge in the field of science or technology, the development of new products, materials, technologies or processes and related to the development, design, manufacture, processing, production or fabrication of a product or potential product.” The production and clean room exemptions are also modified to include property used in research and development. This bill is effective retroactively to April 1, 2005. (Idaho H.B. 260, Laws 2005)