"Research Equipment: Any item (or interrelated collection of items comprising a system) of nonexpendable tangible property, having a useful life of more than 1 year and a cost of $2,000 or more, which is used wholly or in part for research."

Note that all three conditions must be met for an item to be considered equipment, i.e.:

1. nonexpendable tangible property; and,
2. useful life of more than 1 year; and,
3. a cost of $2,000 or more.

To be considered materials or supplies an item must meet only one of the following conditions:

1. expendable tangible property; or,
2. useful life of 1 year or less; or,
3. a cost of less than $2,000.

For example, a laptop computer that costs less than $2,000 would be considered as materials or supplies even though it is a nonexpendable tangible item with a useful life of more than one year.