Tax Deductions allow you to reduce your taxable income. Tax Credits allow you to directly reduce your tax liability.
According to IRS, income includes money, property or services. Any income is taxable unless the law specifically exempts it, and all taxable income must be reported even some nontaxable.
There were two types of loans to businesses. PPP Loans & Economic Injury Disaster Loan.
Neither the PPP Loan nor the EIDL is taxable income. For more information on Small Business Covid Relief visit IRS.Gov