You may not be familiar with SB-113. Gov. Newsom signed it into law on Feb. 9, 2022. It's a bill that conforms California to the federal provision.
SB 113 makes federal grants received through the Restaurant Revitalization Fund exempt from state tax liability. This means that businesses that received these grants will not have to pay California state taxes on the grant amounts.
Maybe someone at Turbotax should read this.
