The back-to-school season is one of the busiest periods for Texas businesses that serve families, students, and educational institutions. Whether you run a retail store, tutoring center, childcare facility, uniform supplier, or technology company, government programs may help you prepare for the seasonal surge in demand. This guide covers the grants, loans, and tax incentives that may be relevant to Texas businesses during the back-to-school season.
Retail and Sales Tax Programs
Texas Sales Tax Holiday
Texas holds an annual sales tax holiday in August that exempts certain clothing, footwear, school supplies, and backpacks from state and local sales tax. While this primarily benefits consumers, retailers see increased traffic and sales volume during the holiday weekend. Business owners should plan inventory and staffing accordingly.
Franchise Tax Deductions
Texas businesses may deduct cost of goods sold or compensation when calculating franchise tax. Businesses investing in back-to-school inventory may benefit from timing purchases to maximize deductions within their reporting period.
Workforce and Hiring Programs
Seasonal Hiring Tax Credits
Businesses hiring seasonal workers for the back-to-school rush should screen new hires for WOTC eligibility. Tax credits of $2,400 to $9,600 per qualifying hire are available for workers from target groups including veterans, SNAP recipients, and summer youth employees.
Skills Development Fund
Businesses needing to train seasonal or new permanent employees can explore Skills Development Fund partnerships with local community colleges. While the timeline may not align with every seasonal need, planning ahead for recurring seasonal demands can make this program practical.
Childcare and Education Businesses
CCDF and Childcare Subsidies
Childcare providers that accept subsidized children through the Texas Workforce Commission's childcare program serve families returning to work as school starts. Providers should ensure they are enrolled in the TWC childcare provider network.
Texas Education Agency Programs
Businesses providing educational services, tutoring, or supplemental instruction may access contracts through school districts using federal Title I and Title III funding. Contact local school districts about vendor opportunities for tutoring and educational support.
SBA Lending for Seasonal Needs
Working Capital Loans
SBA 7(a) loans and SBA Express loans can provide working capital for seasonal inventory purchases, temporary staffing, and marketing campaigns. SBA CAPLines provide revolving credit specifically designed for seasonal working capital needs.
Microloans
Small retailers and service businesses needing modest capital for back-to-school preparation may access SBA Microloans up to $50,000 through CDFI lenders including LiftFund and PeopleFund.
Technology and E-Commerce
Businesses selling school supplies, educational technology, or student services online may benefit from:
- SBA e-commerce programs: Training and resources for online sales through SBDCs.
- R&D Tax Credit: EdTech companies developing educational software may qualify.
- SBIR/STTR: Education technology companies may access federal R&D grants through the Department of Education and NSF.
Planning Steps for Back-to-School Season
- Inventory planning: Time purchases to maximize franchise tax deductions and prepare for the sales tax holiday.
- Screen seasonal hires: WOTC screening at the point of hire captures available tax credits.
- Secure working capital early: SBA loan applications take time; apply well before the season starts.
- Contact school districts: Vendor opportunities for educational services open during budget planning.
- Review insurance and compliance: Ensure coverage and licensing are current for increased activity.
Find Programs That May Fit Your Business
Texas businesses serving the back-to-school market may qualify for workforce, lending, and tax programs year-round. Our screening report matches your business against all applicable programs. Start your free screening →