I received a 1099-MISC but I don't think they are income.
If you received a 1099-MISC then there is no question that the grants "ARE" income. Period. It's also reportable on your tax return. Otherwise, you would not have been sent a tax reporting document of any kind. As for the taxability of that income, I can't say. But without question it's reportable on your tax return.
I would suspect the income is also taxable. (the best things in life are free ..... PLUS TAX!) However, it's taxability will be offset based on what you used the money for. If you used the money for qualified property improvements on rental property, then those improvements are entered in the Assets/Depreciation section of the SCH E and depreciated over time.
