If you Google "is the CARES for business restart grant taxable" there are numerous articles   

Seems each state has a different program ???  

"Seems each state has a different program ???"

The funds from the Feds were filtered down through the States, the Counties, and even local agencies such as Health Departments and Aging Services. When they are paid to a business (other than NFP), it is treated as ordinary taxable reportable income. And it's really a bit of a wash, because it is supposed to be used to offset unexpected costs or costs incurred to maintain operations that are deemed essential and those costs are deductible as usual.