Forget about what I said ☝️

Just realized your question is about S-corp filing.

To elect PTE tax on the KY entity return, you need to do the following:

1. Go to State & Local > Adjustments > KY Adjustment;
2. Scroll down to the Kentucky Forms 740-PTET and 740NP-WH section; and
3. Check the box for Electing to pay income tax at the entity level (triggers Form 740-PTET).

This will generate the require 740-PTET, compute the PTE tax that would flow to each shareholder's K-1, and produce the PTET-CR for each shareholder.