City Pandemic Grant

[Patrick Michael]

Client owns a restaurant/bar (S Corp).  The city used funds they received from the federal/state for pandemic relief to give grants to struggling restaurants. Grant does not have to repaid.  I know that forgiven PPP loans do not have to be included as income but what about other pandemic relief grants?  I can't find anything saying they are excluded from income and am hoping I just not looking on the right place.  Anyone else run into this?

Thanks

[Lee B]

The general rule is that unless it specifically excluded from taxable income then it is taxable.

Perhaps your state excluded it from state taxable income?

[Patrick Michael]

34 minutes ago, cbslee said:

The general rule is that unless it specifically excluded from taxable income then it is taxable.

Perhaps your state excluded it from state taxable income?

That's what I am looking for, an exclusion that I can't find!