Learn more about the $300B world of government credits and incentives.

1. Bringing jobs to rural & suburban communities
Startup Tax Credits, Hiring Incentives, & Opportunity Zones
June 2020

2. Why Does This Matter?

3. Every year, governments globally allocate over $300
billion dollars amongst 2,000+ job creation and tax
credit programs.
The Government Incentives & Credits Market

4. Large companies utilize sophisticated government
relations teams to advantage of these programs, and
save billions of dollars each year.
Large Companies

5. The average startup is leaving MILLIONS of dollars
worth of value on the table.
For every $1 raised, a startup is eligible for
approximately $1.25 in credit value.

6. MainStreet’s Story

7. $10,000 to
Leave the Bay
Area

8. MainStreet helps startups automatically discover,
apply for, and receive government incentives and tax
credits.
About MainStreet

9. Credits, Incentives, & Opportunity Zones

10. Startup Credits & Incentives
Immediate Value Long-Term Value
• Payroll Tax Credits
• Education & Training
Credits
• Hiring Incentives
• Opportunity Zone
Investments
•Corporate Income Tax
Credits
•Net Operating Loss
•Opportunity Zone Tax
Benefits

11. Startup Credits & Incentives
Immediate Value Long-Term Value
• Payroll Tax Credits
• Education & Training
Credits
• Hiring Incentives
• Opportunity Zone
Investments
•Corporate Income Tax
Credits
•Net Operating Loss
•Opportunity Zone Tax
Benefits

12. The Two Most Important Payroll Tax Credits

13. Payroll Tax Credits
reduce your immediate
payroll tax liability - its
like getting a check
every time you run
payroll!
Payroll Tax Credits - Immediate Benefit

14. R&D Payroll Tax Credit - Payroll Tax Credits - Immediate Benefit
When people think research and development, they
generally think this:

15. R&D Payroll Tax Credit - Payroll Tax Credits - Immediate Benefit
But, it also means this:

16. R&D Payroll Tax Credit - Payroll Tax Credits - Immediate Benefit
Form 6765(Rev. December 2019)
Department of the Treasury
Internal Revenue Service
Credit for Increasing Research Activities
Attach to your tax return.
Go to www.irs.gov/Form6765 for instructions and the latest information.
OMB No. 1545-0619
Attachment
Sequence No. 81
Name(s) shown on return Identifying number
Section A—Regular Credit. Skip this section and go to Section B if you are electing or previously elected (and are not revoking) the
alternative simplified credit.
1 Certain amounts paid or incurred to energy consortia (see instructions) . . . . . . . . . . 1
2 Basic research payments to qualified organizations (see instructions) . . . 2
3 Qualified organization base period amount . . . . . . . . . . . . 3
4 Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . 4
5 Wages for qualified services (do not include wages used in figuring the work
opportunity credit) . . . . . . . . . . . . . . . . . . . . 5
6 Cost of supplies . . . . . . . . . . . . . . . . . . . . 6
7 Rental or lease costs of computers (see instructions) . . . . . . . . 7
8 Enter the applicable percentage of contract research expenses. See instructions 8
9 Total qualified research expenses. Add lines 5 through 8 . . . . . . . 9
10 Enter fixed-base percentage, but not more than 16% (0.16) (see instructions) 10 %
11 Enter average annual gross receipts. See instructions . . . . . . . . 11
12 Multiply line 11 by the percentage on line 10 . . . . . . . . . . . 12
13 Subtract line 12 from line 9. If zero or less, enter -0- . . . . . . . . . 13
14 Multiply line 9 by 50% (0.50) . . . . . . . . . . . . . . . . 14
15 Enter the smaller of line 13 or line 14 . . . . . . . . . . . . . . . . . . . . . 15
16 Add lines 1, 4, and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17 Are you electing the reduced credit under section 280C? Yes No
If “Yes,” multiply line 16 by 15.8% (0.158). If “No,” multiply line 16 by 20% (0.20) and see the
instructions for the statement that must be attached. Members of controlled groups or businesses
under common control, see instructions for the statement that must be attached . . . . . . . 17
Section B—Alternative Simplified Credit. Skip this section if you are completing Section A.
18 Certain amounts paid or incurred to energy consortia (see the line 1 instructions) . . . . . . . 18
19 Basic research payments to qualified organizations (see the line 2 instructions) 19
20 Qualified organization base period amount (see the line 3 instructions) . . . 20
21 Subtract line 20 from line 19. If zero or less, enter -0- . . . . . . . . . . . . . . . . 21
22 Add lines 18 and 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
23 Multiply line 22 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . 23
24 Wages for qualified services (do not include wages used in figuring the work
opportunity credit) . . . . . . . . . . . . . . . . . . . . 24
25 Cost of supplies . . . . . . . . . . . . . . . . . . . . 25
26 Rental or lease costs of computers (see the line 7 instructions) . . . . . 26
27 Enter the applicable percentage of contract research expenses. See the line 8
instructions . . . . . . . . . . . . . . . . . . . . . . 27
28 Total qualified research expenses. Add lines 24 through 27 . . . . . . 28
29 Enter your total qualified research expenses for the prior 3 tax years. If you had
no qualified research expenses in any one of those years, skip lines 30 and 31 29
30 Divide line 29 by 6.0 . . . . . . . . . . . . . . . . . . . 30
31 Subtract line 30 from line 28. If zero or less, enter -0- . . . . . . . . 31
32 Multiply line 31 by 14% (0.14). If you skipped lines 30 and 31, multiply line 28 by 6% (0.06) . . . . 32
33 Add lines 23 and 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
34 Are you electing the reduced credit under section 280C? Yes No
If “Yes,” multiply line 33 by 79% (0.79). If “No,” enter the amount from line 33 and see the line 17
instructions for the statement that must be attached. Members of controlled groups or businesses
under common control, see instructions for the statement that must be attached . . . . . . . 34
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 13700H Form 6765 (Rev. 12-2019)
• You get back roughly
10% of what you
spent on R&D.
• Up to $250,000 per
year in payroll tax
deduction.
• Good for 5 years.Form 6765

17. Employee Retention Credit - Payroll Tax Credits - Immediate Benefit
The CARES Act
COVID-related relief
- a wide variety of
support.

18. Employee Retention Credit - Payroll Tax Credits - Immediate Benefit
Form 7200(March 2020)
Advance Payment of Employer Credits Due to COVID-19
Department of the Treasury
Internal Revenue Service
Go to www.irs.gov/Form7200 for instructions and the latest information.
OMB No. 1545-0029
Name (not your trade name) Employer identification number (EIN)
Trade name (if any) Applicable calendar quarter (check one)
(2) April, May, June
(3) July, August, September
(4) October, November, December
Number, street, and apt. or suite no. If a P.O. box, see instructions.
City or town, state, and ZIP code. If a foreign address, also complete spaces below. (See instructions.)
Foreign country name Foreign province/county Foreign postal code
Does a third-party payer file your employment tax return? (See instructions.) If “Yes,” enter its name. Third-party payer’s EIN (if applicable)
Tip: File Form 7200 if you can’t reduce your employment tax deposits to fully account for these credits that you expect to claim on
your employment tax return for the applicable quarter. Don’t reduce your employment tax deposits and request advanced credits for
the same expected credits. You will need to reconcile your advanced credits and reduced deposits on your employment tax return.
You can’t request an advance payment of the credit for sick and family leave for self-employed individuals.
Part I Tell Us About Your Employment Tax Return
A Check the box to indicate which employment tax return form you file (or will file for 2020):
(1) 941, 941-PR, or 941-SS (2) 943 or 943-PR (3) 944 or 944(SP) (4) CT-1
B Is this a new business started on or after January 1, 2020? . . . . . . . . . . . . . . . Yes No
If “Yes,” skip line C unless you’ve already filed Form 941, Form 941-PR, or Form 941-SS for at least one
quarter of 2020.
C Amount reported on line 2 of your most recently filed Form 941 (or wages reported on Schedule R (Form
941), column (c), by your third-party payer (see instructions)). If you file a different employment tax return,
see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D Enter the total number of employees you have. See instructions . . . . . . . . . . . . . .
Part II Enter Your Credits and Advance Requested
1 Total employee retention credit for the quarter. See instructions . . . . . . . . . . . . . 1
2 Total qualified sick leave wages eligible for the credit and paid this quarter. See instructions . . . 2
3 Total qualified family leave wages eligible for the credit and paid this quarter. See instructions . . . 3
4 Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Total amount by which you have already reduced your federal employment tax
deposits for these credits for this quarter . . . . . . . . . . . . 5
6 Total advanced credits requested on previous filings of this form for this quarter 6
7 Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Advance requested. Subtract line 7 from line 4. If zero or less, don’t file this form . . . . . . . 8
Third-
Party
Designee
Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the
instructions for details. Yes. Complete below. No
Designee’s name and phone number
Select a 5-digit personal identification number (PIN) to use when talking to the IRS
Sign
Here
Under penalties of perjury, I declare that I have examined this form, including any accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature Date Printed title
Printed name Best daytime phone
Paid
Preparer
Use Only
Print/Type preparer’s name Preparer’s signature Date PTIN Check if
self-employed
Firm’s name Firm’s EIN
Firm’s address Phone no.
How
To File Fax your completed form to 855-248-0552.
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 56392D Form 7200 (3-2020)
Form 7200
• $5,000 in payroll tax
credit per employee.
• Can’t have taken PPP.
• Demonstrate that
businesses was hurt
by COVID.

19. Education and Training Credits

20. State Education and Training Credits
State governments are incentivized to help “upskill”
the skills of their employees - a better trained, better
workforce makes a state more competitive.
42 states have some sort of on-the-job training
reimbursement programs - generally 50% of what
you spent on training, you get back!
Odds are, your state has a program.

21. California ETP - State Education and Training Credits
Spotlight on California

22. California ETP - State Education and Training Credits
• Agriculture
• Allied Healthcare
• Biotechnology and Life
Sciences
• Construction
• Goods Movement and
Transportation Logistics
• Green/Clean Technology
• Information Technology
Services
• Manufacturing
• Multimedia/Entertainment
• Technical Services
Up to 50% of the costs
of upskilling someone
in the following
sectors:

23. Hiring Credits

24. Hiring Credits
Cities, states, and counties are trying to compete for
good jobs, and will provide incentives for hiring locally.
Sometimes these benefits go to the company, and
sometimes they go directly to the employee!

25. Tulsa Remote - Hiring Credits

26. Topeka and Vermont Remote - Hiring Credits
Vermont Topeka

27. Opportunity Zones

28. Opportunity Zones
Opportunity Zones were created to help revitalize low-
income commercial and industrial areas within cities
and states.
INCREDIBLE tax advantages are available both to
companies and investors within Opportunity Zones.

29. Where Are Opportunity Zones?

30. Benefits of Opportunity Zones
Opportunity Zones give qualified investors and
companies:
• 100% tax free investment returns.
• The ability to significantly reduce capital gains
liabilities.

31. Taking Advantage of Opportunity Zones
How do I take advantage of Opportunity Zones:
• Base 50% of your company out of an Opportunity
Zone, or…
• Have 50% of your income come from Opportunity
Zones.

32. Thank You!
Questions?