Creates a two-year tax credit program of up to $1B and allows grants in lieu of tax credits under specified conditions. Provides for a credit or grant of 50 percent of the qualified investment for such taxable year relating to a qualifying therapeutic discovery project – defined as those designed to treat or prevent diseases or conditions; develop molecular diagnostics to guide therapeutic decisions; or to develop a product, process or technology to further the delivery or administration of therapeutics – by an eligible taxpayer with 250 or fewer employees. Specifies that Treasury and HHS shall, within 60 days of enactment, establish a program to consider and award certifications for qualified investments eligible for credits to qualifying sponsors. Delineates an appropriation to Treasury for such sums as may be necessary. Applies to amounts paid or incurred after December 31, 2008, in taxable years beginning after such date.