Thanks.  I believe you are correct.  Just finishing up a MD electing PTE and going back to the VA electing PTEs.  The reason I thought it was incorrect:

Someone on the VA CPA tax listserve posted something about it not computing correctly.  And no one said otherwise.

And, it seems unfair that the PTE tax is computed before the deduction for Section 179.  Seems like everyone will be overpaid that has separately stated deductions.But, I agree that's the way its working.