The holiday season drives significant revenue for Texas businesses across retail, hospitality, food service, and e-commerce. Government programs may help you manage seasonal hiring, secure working capital, and maximize tax benefits during the busiest selling period of the year. This guide covers programs relevant to Texas businesses during the holiday season.
Seasonal Hiring Programs
Work Opportunity Tax Credit
Businesses hiring seasonal workers should screen all new hires for WOTC eligibility. Federal tax credits of $2,400 to $9,600 per qualifying hire are available for workers from target groups including veterans, SNAP recipients, long-term unemployed, and ex-felons. The key is screening at the point of hire, not after the season ends.
Workforce Solutions
Texas Workforce Solutions offices throughout the state provide free recruitment assistance, job posting services, and candidate screening for employers. These services can help businesses find seasonal workers more efficiently.
Working Capital Programs
SBA CAPLines
The SBA CAPLines program provides revolving credit specifically designed for seasonal and cyclical working capital needs. Businesses that experience predictable seasonal spikes can use CAPLines to finance inventory purchases and bridge receivables during the holiday rush.
SBA 7(a) and Express Loans
SBA 7(a) and Express loans can provide working capital for holiday inventory, temporary space, marketing campaigns, and seasonal staffing. Express loans offer faster approval timelines for amounts up to $500,000.
CDFI Lending
Community Development Financial Institutions like LiftFund and PeopleFund offer flexible small business loans that may be accessible for businesses that need quick working capital for holiday preparation.
Tax Planning Opportunities
Year-End Equipment Purchases
Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the year of purchase rather than depreciating over time. Year-end equipment purchases can reduce current-year tax liability.
Bonus Depreciation
Federal bonus depreciation allows businesses to deduct a significant percentage of new asset costs in the first year. This provision phases down over time, so check current-year percentages.
Franchise Tax Planning
Texas businesses approaching the franchise tax threshold should plan year-end purchases and compensation to optimize their franchise tax calculation.
E-Commerce and Online Sales
Businesses selling online during the holiday season should:
- Verify sales tax compliance: Texas requires collection and remittance of sales tax on online sales shipped to Texas addresses.
- Review multi-state obligations: Online sellers may have nexus in multiple states during high-volume periods.
- Explore SBDC e-commerce resources: Free training and consulting for online sales optimization.
Holiday Season Business Checklist
- Screen all seasonal hires for WOTC: File IRS Form 8850 within 28 days of start date.
- Secure working capital early: SBA loan applications take weeks; apply before November.
- Plan year-end equipment purchases: Maximize Section 179 and bonus depreciation.
- Contact Workforce Solutions: Free recruitment assistance for seasonal hiring.
- Review insurance: Verify coverage is adequate for increased inventory and seasonal employees.
Find Programs That May Fit Your Business
Holiday season programs are part of a broader set of year-round incentives available to Texas businesses. Our screening report matches your business against all applicable programs. Start your free screening →