In short, no. For the most part, a State Installment Agreement does take prcedence over the federal liability. The IRS Policy does not allow State or local tax repayments as an expense toward lowering your monthly disposable income (”MDI”).
However, state and local tax repayments (i.e. installment agreements) are allowed for federal installment agreement purposes.
This deliniation may effect your choice of tax resolution options. You should consult a tax professional if your situation is this complicated.