I've worked a lot with the grants that went to businesses from the State and the County and even from the local health departments, and these are taxable to the business. I would treat a grant between entities as taxable. Keep in mind that it would be a wash event, because the grants were supposed to help offset unexpected costs or to maintain business operations, which would be reported for deduction.

Where would these taxable grants be entered in Lacerte and show up on tax return?

Add the amount to the Business income.