DE tax return question - non resident

[bryce]

I have a client that lives in MD and has a S Corporation in MD.  In 2024, he started a new business in DE that is also an S Corporation.  I prepared both S Corporation returns. The DE S Corp has $150k of net income.  The MD S Corporation had $100k loss.  The net results in $50k taxable income on the federal return.

I'm preparing his Non Resident DE tax return now.  I'm filling out Form PIT-NON. In Section A, the Federal Column A shows shows the $50,000.  DE Source Income Column B shows $150k. 

I would have thought he would be paying tax on the full $150k. However, Line 30b "Delaware AGI" is using the $50k and the client seems to only be paying tax on that amount.  I called Proseries and that didn't get me anywhere. I called State of DE and talked to an auditor who basically said "that is how it's calculating, so go with it and we'll fix it on our end if its wrong"

Any idea if this is correct?