At the height of the COVID-19 pandemic, Orange County, FL awarded approximately $80 million in Coronavirus Aid, Relief and Economic Security (CARES) Act grants to more than 8,000 businesses.
The county government notes that “65% of those dollars went toward minority and women-owned businesses” and that the funds were used to help cover rent and utility expenses, invest in required personal protective equipment (PPE), and pay for other unanticipated costs related to the pandemic.
Although the vast majority of businesses in the United States have returned to a “new normal” – with some going fully remote and making other permanent changes – there are still small business owners who are being deeply impacted by the long-term impact of COVID.
As a result, Orange County is set to offer another round of grants valued at $26 million.
On October 25, the Orange County Commission approved KPMG LLP as the vendor for these additional small business and gig worker grants via the federal American Rescue Plan Act.
If you have questions about how to apply for these grants, call 407-836-3111 or visit the county’s official coronavirus relief webpage.
If you ultimately apply for and receive funds from this round of Orange County’s small business relief grants, you might be wondering if you will have to pay taxes on the money.
coronavirus relief funds website, “the receipt of a government grant by a business generally is not excluded from the business's gross income under the Code [IRS Tax Code] and therefore is taxable.”
However, there are certain caveats to this information. If, for instance, a grant is made by the government of a federally recognized Indian tribe to a member in an effort to expand an Indian-owned business on or near reservation land, the funds are to be excluded from the tribe member's gross income.
As a business owner, it is imperative for you to work with a qualified Central Florida tax professional to make sure you are taking all of the deductions for which you are eligible, and that you are reporting all of your income correctly.
If you have questions regarding Orange County’s newest round of pandemic relief grants, talk to your tax expert before applying.
Are you glad Orange County, Florida has taken this step to help small business owners?
About Sonu Shukla, CPA, CFP
Sonu Shukla is a Certified Public Accountant as well as Certified Financial Planner. He believes in proactive tax planning and has the skills, education and experience to demonstrate passionately planned financial strategies. His firm tailors highly efficient tax plans for his small business clients, all in a one on one environment where he and the client can bounce ideas around until every detail is worked out. Located in Orlando, FL, he services all of Florida.
