These are the glory days for those seeking to claim the federal research tax credit. This is particularly so for small and middle market businesses and startups. The credit effectively generates a net tax savings of 13% (or approximately 9.1% under the alternative simplified method) of incremental qualified research spending. And the credit reduces tax liability dollar for dollar. Now, more than a generation after its enactment, the credit is permanent. Companies no longer need to fear that the credit won’t be re-enacted every couple of years by Congress.