Thanks for the reply @Nick D 

I reached out to the Rules & Regs Bureau of the DOR via email and received a response (within 10 days!  Much faster than anything I'd ever receive from IRS...) via letter that confirmed my understanding.  They summarized at the end that: "If your client meets the requirements under the Code and GL Chapter 62, Sec 4(c), there would be a 3% tax on 50% of the capital gains from the sale of qualifying stock".

So now I have to figure out a way to do this in Lacerte...  That may mean I have to prepare a duplicate client and use one to file federal with the 100% exclusion and one to file state while somehow finagling the Schedule D-IS to actually show the 50% capital gain to get just that portion taxed at 3%.   I'm sure I won't get it to exactly do this correctly, but as long as I get it to calculate using the right amount of cap gains I should be good.

Wish me luck!  🙂