The current instructions to CA SCH line 2 (California tax liability) say to use CA Form 540 Line 48 tax liability without reduction for other state tax credits.  However the CA form 540 line 48 is being reduced for the CA PTE credit.  This greatly reduces the CA Tax liability with which the Schedule S uses to compute the other state tax credits.  This results in a large loss of the other state tax credits.  Does anyone know if the CA SCH S instructions for Line 2 will be revised to use CA Form 540 line 48 before OSTC and before CA PTE credit or is this just another bad result in the CA PTE regime?
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