"Business received" is the place to start. Research the specific grant to find the specific code that excludes that specific grant from Fed tax; then, do the same for State. A lot of people are confused about the CARES grants; these grants flowing to businesses are Fed taxable unless you find the specific exclusion. Or, this is EIDL grant? What was the purpose of the specific grant?

Links:

https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions

https://financialadvisors.com/blog/blogdetails/covid-19-related-government-grants-taxable-or-not