Restaurants and other hospitality and tourism businesses in Texas who were negatively impacted by COVID-19 will have another opportunity to apply for a grant of up to $20,000 from the Texas Travel Industry Recovery Grant Program (TTIR), beginning on Feb. 1, 2023.  

The state’s Economic Development and Tourism Office is administering the grant and has decided to reopen the application portal to all who are eligible until the funding is depleted. As applications are submitted to the final round, TTIR grants will be awarded to eligible applicants on a first-come, first-served basis. Businesses already waiting for an awards determination will not lose their spot in line, so long as they continue to respond to messages in their portal and comply with grant administrator instructions.  

Find out if you qualify and how to apply in the FAQs below. 

Who Can Apply?

Applicants in the travel, tourism and hospitality industries (as determined by eligible NAICS code) who were negatively impacted by COVID-19 can apply. Basic qualifying criteria for a prospective applicant includes, but is not limited to, the following: 

  • In operation prior to Jan. 20, 2020 
  • Operates in Texas 
  • Privately-owned, for-profit businesses or non-profit organizations 
  • Open to the public or provide services for in-person events 
  • The business or organization is in the eligible NAICS codes listed for the travel, tourism and hospitality industries (NAICS codes 71, 722, 7211, 7212, 5615, 561920, 312120, 312130, 312140, 532111, 487990, 487210, 487110, 485510, 483212, 483114, 483112, 481211, 481111) 
  • Suffered negative economic impact due to COVID-19 
  • Otherwise eligible to receive this grant funding and not barred from competing for federal awards, including the guidelines on government-wide suspension and debarment in 2 CFR part 180 or for any other reason 

What Costs Are Eligible?

Costs in the following categories will be allowed, if they address the identified need or impact of the COVID-19 pandemic, are in response to the disease itself or the harmful consequences of the economic disruptions resulting from or exacerbated by the COVID–19 public health emergency. Additionally, qualifying costs must have been incurred in the period beginning Nov. 8, 2021, through the time of the application (and in no event later than Aug. 31, 2024). Qualifying costs include: 

  • Payroll and covered benefits expenses (other than unemployment and pension funds) and compensation of returning employees for lost pay and benefits during the COVID-19 pandemic, compliant with 2 CFR 200.430 and 200.431, the coverage of which mitigates financial hardship, such as declines in revenues or profits; and only if less than $20,000 of payroll costs and compensation are eligible under the grant. 
  • COVID-19 mitigation and prevention measures to enable safe reopening, which may include, but are not necessarily limited to: 
    • Improvements to ventilation, physical barriers or partitions 
    • Signage to facilitate social distancing, provision of masks 
    • Personal protective equipment 
  • Rent, leases and utilities 
  • Professional bookkeeping services, to the extent that these are accounting services related to payroll bookkeeping and tax filings and are or will be reported by the applicant on a Form 1040, Schedule C federal tax form for the year in which the cost occurs; and Contract labor, to the extent that these are expenses which are or will be reported by the applicant on a Form 1040, Schedule C federal tax form for the year in which the cost occurs and are related to the operation of the business or to the maintenance of its facilities or equipment. 

Expenses in these categories must be related and reasonably proportional to the extent and type of harm experienced; uses that bear no relation or are grossly disproportionate to the type or extent of harm experienced would not be eligible uses. In addition, all uses shall be compliant with applicable federal and state guidance. 

What Documents are Required?

Applicants must submit the following documents, where applicable. Legible photocopies, scanned documents and digital photos of documents are accepted in lieu of original documents.  

1. One of the following:

2019, 2020 and 2021 Texas Sales and Use Tax Return 01-117 or 01-114; OR one of the below forms for 2019, 2020 and 2021: 

    • Texas Hotel Occupancy Tax Report (Comptroller of Public Accounts Form 12-100) 
    • Return of Organization Exempt from Income Tax (IRS Form 990) 
    • U.S. Individual Income Tax Return (IRS Form 1040) 
    • U.S. Corporation Income Tax Return (IRS Form 1120) 
    • U.S. Return of Partnership Income (IRS Form 1065) 
    • Texas Franchise Tax Annual Report (Comptroller of Public Accounts Texas Franchise Tax Form(s)) 
    • Texas Mixed Beverage Gross Receipts Tax (Comptroller of Public Accounts Form 67-100) 

Applicants submitting an IRS Form 990N must submit a Profit and Loss statement containing total revenue for the reporting period. The Profit and Loss statement must be signed and dated by an organization officer substantiating the information. The Form must also be accompanied by the 990N attestation form. 

A mixture of State and Federal tax forms cannot be submitted to meet this documentation requirement. Instead, applicants should choose one type of form (i.e., Comptroller of Public Accounts Form 12-100 or IRS Form 990; not a combination thereof). In the case of a change in business type a combination of federal forms may be evaluated on a case-by-case basis. 

2.  Most Recent Employer’s Quarterly Federal Tax Return (IRS Form 941) or a memorandum indicating why the entity is not required to file an IRS Form 941
3. Invoices/payroll records for reimbursement
4. Veterans Administration Service or Benefits Letter
5. Other documentation as required by for other submitted expenses 

How Can I Apply?

To apply for this grant, please visit the TTIR portal. Click here to access it.  

Texas businesses interested in taking advantage of this grant should prepare and act quickly. To obtain assistance preparing this information or to apply, contact our Houston CPAs today.