Here is my work around (as of 2/18/22) for 1065, you'll have to find the corresponding screens for a 1120S:

1. deduct the amount paid or accrued on federal form

2.  on state K1 you must check box that entity elected for current year and mark if partner was allocated to resident/non-resident.  (screen 32.1 on 1065), page 2 of IT-204-IP, question Q

3. enter the state income tax addback modification A 201 (screen 40.091 on 1065)

4. enter the total credit that should be picked up by all partners (screen 41.091 - NYS credits, other credits bases - click on credit information box (very last line in that screen) and you can manually enter the code 219 or 220 (reference instructions IT 225 for PTET credit).  - this will then have the credit amount appear on page 4 of the IT 204IP

5. if you need to specifically allocate the PTET credit among the partners differently than their partnership %, then go to screen 39.1.

Hoping for better guidance from both NYS and Lacerte on this!