The federal research tax credit is designed to encourage long-term increases in the amounts spent on research and experimental activities for research conducted in the US. With the passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, the research tax credit can be claimed for qualified research expenditures incurred from Jan 1, 2010 through Dec 31, 2011 for US-based qualifying research to promote innovation. This article highlights relevant questions that may face management when evaluating the potential to qualify for the credit. Also, this article offers additional exceptions and considerations to contemplate when computing the credit, as well as examples of research intensive industries. It is important for firms to reevaluate their potential for research-intensive expenses that may qualify for the research and experimentation tax credit in order to assess an overlooked opportunity. The benefits of taking advantage of the credit can range from increases in cash flows to reductions in tax rates.