Thanks for the response!  Edit:

Option 1.  It doesn't get added back to MD so I made an override in screen 38.271 .  That somehow changes the percentage of ownership on line 5a of Form 511 (I guess that's based on federal income), so I overrode the percentage of ownership as well.

Option 2.  Use the regular deductions screen (Screen 13).  Under 'Taxes' enter MD PTE taxes as a state tax and then subtract it in other taxes with a -1 in 'State if different'.

I ended up going with option 1.  Option 2 incorrectly uses the higher income amount (net income + MD tax addback) on lines 1 and 2 of Section A of the K-1.  Option A only does that to line 2.