Lynn EA - only for S-Corps and LLCs in Virginia that want to adopt PTET rules. Virginia has a new pass-through entity form 502PTET with the 502PTET K-1 that has the pass-through credit. In order to calculate and pay the VA PTET Tax and assign a pro-rata credit to a shareholder/member, both Virginia forms need to be filed electronically. So--to your question--to assign the credit to a shareholder/member, the entity needs to file electronically. If a shareholder/member GETS a 505PTET K-1 for Virginia, ATX supports that function on the 1040 series.