How do I report grant income received in 2023 when I won't spend it until 2024?

In July 2023 I received a grant for $4,050, for a project to be completed by June 2024. I received a 1099-NEC for this income.

I only spent a couple hours in 2023 on this project, and spent only about $75 on materials in 2023 for the project.

The vast majority of the $4,050 will be used to pay for labors and material in 2024. However, if I enter the 1099-NEC for this income, I am still having to pay taxes on the whole $4,050 minus the $75 on expenses.

Is there anyway around this? And if I do end up having to pay taxes on all this money this year, how will I get that back next year after when I use it for the expenses for the project?

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