Sec. 32.6727  Research and development.

    (a) This account shall include costs incurred in making planned 
search or critical investigation aimed at discovery of new knowledge. It 
also includes translating research findings into a plan or design for a 
new product or process or for a significant improvement to an existing 
product or process, whether intended for sale or use.
    (b) This excludes making routine alterations to existing products, 
processes, and other ongoing operations even though those alterations 
may represent improvements.