On or before May 22, 2010, the Treasury Department is expected to announce regulations implementing the Qualified Therapeutic Discovery Project Credit. The announcement will put in motion the process by which the Treasury Department, in consultation with the Department of Health and Human Services, will allocate $1 billion among small businesses that have made or will make qualified investments in certain therapeutic discovery projects in 2009 or 2010. What makes this tax credit especially attractive is that businesses can elect to receive a grant in lieu of the nonrefundable tax credit; such a grant is not includible in gross income, although it is subject to recapture if an investment ceases to be a qualified investment. With approximately one month remaining before the announcement, eligible businesses should become familiar with the tax credit, so that they are well positioned to take advantage of the program once the application process is announced.