My understanding is that this line is meant to reduce your taxable income if you are itemizing deductions. However, since I am not itemizing deductions (either in CA or federally), it seems wrong that my AMT income is reduced by this amount.
Luckily, I don't owe CA AMT, so I don't think it has an impact, but I'd love to understand if this is a bug in turbotax's software or if there is another reason that there is an entry on this line.