Received a grant to buy a work car but sold car and returned all the funds. I sold it after the New Year. Is there a way to report so grant doesn’t impact 2024 income?

No, but it is adjustable later.

If I understand correctly, you received money in 2024 for the purpose of buying a personal car that you would use sometimes for work.   This is not allowed to be a tax-free employee benefit, so the money will be included on your W-2 as if it was a wage bonus, and subject to all the usual taxes.   Then, you repaid the funds in 2025.  You must report your W-2 as-is for 2024 including paying tax on the bonus/grant.  Then, since you repaid the funds in 2025, you can claim the repayment as a deduction or credit on your 2025 tax return.

If the dates are different, please clarify when you received the grant and when you repaid it.