The Patient Protection and Affordable Care Act of 2010, enacted on March 23, established a new $1 billion Qualifying Therapeutic Discovery Project program, with a tax credit (“QTDP Credit”) for investments in 2009 and 2010 by small and mid-size companies developing therapeutic medical products. Companies qualifying for the QTDP Credit may apply for a grant instead (the “QTDP Grant”). By May 21st the Secretary of the Treasury must issue the form of application and criteria guidelines for the program. Recipients will receive a credit or grant for 50% of their qualifying investments. The application process is likely to be competitive, so now is the ideal time for companies to evaluate their eligibility and prepare for the application process.