Not every single line item from K-1 can be picked up automatically and will flow without user intervention.  State-specific items such as this would be among those you need to decide where and how to make an input.

Reading the filing instructions and publications always help.  If you did, you'd know that it should go to AZ 355.  From there, it'd flow to AZ 301.  At last, the allowable portion will flow to AZ 140.

This means you will need to make the input on State & Local > Other Credits > AZ Credits 355.

Thank you, kind of. 

I know where it is supposed to go and I had found the actual input for the Form 355.  However, I had trouble finding the input for the add-back 140, pg 5, line P.

The add-back is at State and Local/Modifications/AZ Modifications/"entity-level income tax payment" NOT "Addition to S-Corp income due to pass-through credits" (that goes to Line G(b)). 

FYI, the credits are input at State & Local/Other Credits/AZ Credits 355.

Yep, you got it.  That's where you'd enter the adjustment to income.