The IRS recently announced that firms may begin applying for certification for tax credits or grants available under the Qualifying Therapeutic Discovery Project Program. In recent advisories, we reported that the Patient Protection and Affordable Care Act (aka the health care reform bill) includes $1 billion in tax credits and grants to defray the costs of therapeutic research for small and mid-size life sciences companies, including drug, therapeutic, and diagnostic companies. The new, temporary program offers a choice between an income tax credit and a cash grant (not to exceed $5 million per company) for up to 50% of a company’s costs paid or incurred in 2009 and 2010 and directly related to a “qualifying therapeutic discovery project” (QTDP).