If your PPP loan was forgiven, then you don't report it as income on your tax return. If you used the funds for qualifying expenses, they are deductible as they would be otherwise.
Please see Reference for more information: https://turbotax.intuit.com/tax-tips/small-business-taxes/the-payroll-tax-credit-and-other-stimulus-programs-for-covid-19/L8pHzpiiT
Also, be on the look out for any tax documentation sent to you regarding the grant. Follow whatever they ask you to do for your tax return.
Hi Ronny! If you are referring to the Working Washington Grant, a state program to help small businesses that have struggled due to Covid-19, then according to the Washington State Dept. of Commerce these grants are not subject to business and occupation (B&O) tax, public utility tax, or retail sales tax. See Washington Grant FAQs . However, with regard to your Federal return this grant should be included under your business income on the Schedule C. The IRS states that "The receipt of a government grant by a business generally is not excluded from the business's gross income under the Code and therefore is taxable."(see Corona Virus Relief Fund FAQs). I hope that you find these resources helpful!