The Saccharomyces cerevisiae transcription factor IIH (TFIIH) is essential both for transcription by RNA polymerase II (RNAP II) and for nucleotide excision repair (NER) of damaged DNA. We have established cell extracts which support RNAP II transcription from the yeast CYC1 promoter or NER of transcriptionally silent damaged DNA on independent plasmid templates and substrates. When plasmid templates and substrates for both processes are simultaneously incubated with these extracts, transcription is significantly inhibited. This inhibition is strictly dependent on active NER and can be complemented with purified holo-TFIIH. These results suggest that in the presence of active NER, TFIIH is preferentially mobilized from the basal transcription machinery for use in NER. Inhibition of transcription in the presence of active NER requires the RAD26 gene, the yeast homolog of the human Cockayne syndrome group B gene (CSB).Nucleotide excision repair (NER) is a biochemically complex process by which many types of base damage are excised from the genome of living cells as oligonucleotide fragments (14). This process operates both in transcriptionally silent DNA and in DNA that is undergoing active transcription by RNA polymerase II (RNAP II) (5,15,21). A signature feature of the latter NER mode is that the transcribed strand is repaired significantly faster than the nontranscribed strand, a phenomenon referred to as strand-specific repair or transcription-coupled repair (5,15,21).In eukaryotes, NER of both transcriptionally silent and transcriptionally active DNA requires more than 20 distinct gene products (14,29,51). In the yeast Saccharomyces cerevisiae, these proteins include the seven known subunits of the RNAP II basal transcription factor core TFIIH (38), encoded by the essential genes TFB1, TFB2, TFB3, TFB4, RAD3, SSL1, and SSL2 (10,13,17). Mutants with conditional mutations in each of these genes have been shown to be defective in NER by using a cell-free system that measures repair synthesis of damaged plasmids in vitro (13, 21a, 47, 48). While core transcription factor IIH (TFIIH) is essential for NER, this seven-subunit complex is not sufficient for RNAP II transcription in a reconstituted in vitro system (36). Such a system has an additional requirement for polypeptides encoded by the KIN28 and CCL1 genes, which comprise the transcription factor TFIIK (11, 36). The association of TFIIK with core TFIIH generates a complex designated holo-TFIIH (36, 37).The requirement of core TFIIH for both NER and RNAP II transcription led to initial speculation that this requirement might explain the faster rate of NER observed in the transcribed strand relative to that of the nontranscribed strand of transcriptionally active genes. It was suggested that when transcription elongation complexes arrest at sites of base damage in the transcribed strand, TFIIH might promote rapid assembly of the NER machinery at such sites, thus facilitating strandspecific repair (14, 29, 51). However, several studies have shown that TFIIH dis...