Thanks for your response. For the poverty line between 401 to 601%, It generates a CA PAS refund on form 3849. I have a client at 410% poverty line, the PAS refund is $9700, although the subsidy from the CA was only $370. It doesn't make sense.
The problem is the CA form has not caught up with ARPA which eliminated paying back excess premium tax credit. It assumes the taxpayer had to pay back the Fed credit so you don't see any amounts in line 11 column d of the CA 3849. I believe this is a mistake that CA has yet to catch. I have a client that was going to have to pay back about $8,000 of Fed premium credit that now pays none back and CA still wants to give him over $8,000. Am advising them to either go on extension for CA or get the $8,000+ and hold on to it for a year before they spend any of it.
Thank you to clarify the issue.
I agreed this is a mistake of CA Franchise Tax Board. I found out that a taxpayer on a above 400% poverty line has a huge refund but a taxpayer on a 125% poverty line has to pay back the whole subsidy amount. The instruction of form 3849 is not available now, it said "it's subject to change and FTB approval".