Solution:This issue is scheduled to be resolved in a product update 04/30/2019 (Version 39.0430).
Page 24 of the instructions read the following on the distributive share;
If Part I, Schedule B, Line 20, Column D is zero or negative (and you have not elected to file under the Alternative Base), you may enter zero (“0”) for all members.
In the instructions on page 26 for Part IX, column C, it reads:
Allocate the Total PE Tax Credit from subsidiary PE(s) reported on Part I, Schedule D, Line 7, Column C in accordance with each member’s distributive share percentage reported in Part III.
Since the distributive share percentage is zero, no credit is allowed as a passthrough entity credit.