For an entity (S corp in my case) that does not meet the 25% reduction in gross receipts test to deduct the expenses used for PPP loan forgiveness - CA wants the 'specific' expenses reduced (i.e payroll, rent, etc). I see where lacerte has the entry on screen 13 (s corp) to enter expenses nondeductible to state related to a forgiven PPP loan - I guess this is the only option?