qbteachmt
Level 15

Here is a copy of some specific text found in the IRS links you've been given:

Q. If governments use Fund payments as described in the Fund Guidance to establish a grant program to support businesses, would those funds be considered gross income taxable to a business receiving the grant under the Internal Revenue Code (Code)?

A. Yes. The receipt of a government grant by a business generally is not excluded from the business's gross income under the Code and therefore is taxable.

 

It doesn't get plainer than this. But, again, some of the purposes are tax exempt explicitly, such as the SVO (Shuttered Venue Operators). These are distributed and administered by SBA, and are non-taxable grants. RRF (Restaurant Revitalization Fund) is also administered by SBA, and is non-taxable.

 

Which is why I asked who issued the grant. You stated City and County, but is that City? County? City Health Department? County Health Department? Public Works, such as Water grant?

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers