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You will not find in law or publications any reference to specific products, exept a few by way of example.
I know you would like the smoking gun determination.
Your industy would most likely be the same as perfumery, who take the credits now.
Can you give me your industry classification i.e. NAICS code.
Thank you for getting back to me.
According to the IRS field guidance to examinating agents (auditors) this activy does in fact meet the requirements for domestic production.
As long as you are not reselling. Take a completed product and reselling it. Similar to perfumers, and other cosmetics's manufacturers, these are domestic production activities.
The field guide is listed here. The regualtion and the field guide are purposely non-specific except to name those activities that are not included. So as long as you are not reselling a product, then you can claim this.
As I previously stated, you will not find the exact words in text that specifically state manufacturing nail polish is eligible for the credits. The laws itself is general in and only specific to excluded activities.
See this guidance to the field agents: http://www.irs.gov/pub/irs-utl/minimum_checks__2_.pdf