TFIIH has been implicated in several fundamental cellular processes, including DNA repair, cell cycle progression, and transcription. In transcription, the helicase activity of TFIIH functions to melt promoter DNA; however, the in vivo function of the Cdk7 kinase subunit of TFIIH, which has been hypothesized to be involved in RNA polymerase II (Pol II) phosphorylation, is not clearly understood. Using temperature-sensitive and null alleles of cdk7, we have examined the role of Cdk7 in the activation of Drosophila heat shock genes. Several in vivo approaches, including polytene chromosome immunofluorescence, nuclear run-on assays, and, in particular, a protein-DNA cross-linking assay customized for adults, revealed that Cdk7 kinase activity is required for full activation of heat shock genes, promoter-proximal Pol II pausing, and Pol II-dependent chromatin decondensation. The requirement for Cdk7 occurs very early in the transcription cycle. Furthermore, we provide evidence that TFIIH associates with the elongation complex much longer than previously suspected.Accurate transcription of most eukaryotic genes requires the coordinated recruitment of RNA polymerase II (Pol II), along with a host of general transcription factors (GTFs), sequencespecific transcription factors, and chromatin-remodeling factors. The assembly of these factors culminates in the formation of a Pol II promoter complex that initiates transcription, begins elongation, and matures into an elongationally competent state. This maturation is characterized by the phosphorylation of the carboxy-terminal domain (CTD) in the largest subunit of Pol II and the association of a set of elongation and RNAprocessing factors.One of the GTFs, TFIIH, has been implicated in both ATPdependent promoter melting and phosphorylation of the Pol II CTD at serine 5 (Ser5) within the heptapeptide repeat. TFIIH is comprised of two subcomplexes, core IIH and CAK (Cdkactivating kinase) (41). Core IIH contains six subunits, two of which are ATP-dependent DNA helicases. One of these helicases, ERCC3, has been shown to be required for promoter melting in vitro (41) and in vivo (13). CAK is a tripartite complex composed of MAT-1, cyclin H, and the CTD kinase, Cdk7. In higher eukaryotes, CAK also occurs as a free complex, which is primarily involved in cell cycle regulation (19).Cdk7 has been proposed to be one of possibly several kinases responsible for phosphorylating the CTD and thus contributing to the formation of the mature, elongating form of polymerase. Indeed, in vitro assays have demonstrated that Cdk7 kinase activity is required for transcription from the dihydrofolate reductase (DHFR) promoter (1, 41). However, this requirement may depend on the promoter that is used and the purity of the transcription system. For example, Makela et al. (30) found that a kinase-deficient TFIIH supported transcription from the adenovirus major late promoter. More recently, Tirode et al. (41) confirmed these results but found that the mere physical presence of the CAK complex could ...