Federal R&D Tax Credits

Federal R&D tax credits provide a 5%-7% cash rebate on qualified research and development activity. Much of our new equipment qualifies as R&D, as well as much of the tooling we purchase in the supply base. Does anyone have experience with this tax credit that could provide feedback.

What are "Qualified R&D Expenses"?
What process would need to be in place in order to properly track these expenses?
What is the potential annual cash benefit to an organization?

Thanks!