§237-26  Exemption of certain scientificcontracts with the United States.  (a)  Any provision of law to thecontrary notwithstanding, there shall be exempted from the measure of the taxesimposed by chapter 237, all of the gross proceeds derived by a contractor orsubcontractor arising from the performance of any scientific work as defined insubsection (b), under a contract or subcontract entered into with the UnitedStates (including any agency or instrumentality thereof but not includingnational banks), and all of the gross proceeds derived from the sale oftangible personal property by a seller of such tangible personal property tosuch contractor or subcontractor; provided the exemption herein shall applyonly to such tangible personal property which is to be affixed to, or to becomea physical, integral part of the scientific facility, or which is to beentirely consumed during the performance of the service required by thecontract or subcontract.

(b)  For purposes of this section,"scientific work" is work involving primarily the research anddevelopment for, or the design, manufacture, instrumentation, installation,maintenance, or operation of aerospace, agricultural, astronomical, biomedical,electronic, geophysical, oceanographic, test range, or other scientificfacilities.  Maintenance or operation, for purposes of this section, shallinclude housekeeping functions in providing certain nonscientific logistic andsupport services. [L 1965, c 201, §27; Supp, §117-21.6; HRS §237-26; am L 1970,c 180, §13; am L 1971, c 4, §5; am L 1988, c 163, §1]

 

Case Notes

 

  Construed as read before 1970 amendment.  57 H. 253, 554 P.2d238.