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Table 1: States That Require Addback of Related Party ExpensesStateOtherwise deductible expenses added backInterest expenses Intangible expenses Applicable statuteAlabama X X Ala. Code § 40-18-35Arkansas X X Ark. Code Ann. § 26-51-423Connecticut X XConn. Gen. Stat.§§ 12-218c and 12-218dGeorgia X X Ga. Code Ann. § 48-7-28.3Illinois X X 35 Ill. Comp. Stat. § 5/203IndianaInterest expenses relatedto intangible propertyX Ind. Code § 6-3-1-3.5KentuckyInterest expenses relatedto intangible propertyX(and management fees)Ky. Rev. Stat. Ann. § 141.205Maryland X X Md. Code. Ann., Tax-Gen. § 10-306.1Massachusetts X XMass. Gen. Laws ch. 63, §§ 31Iand 31JMichigan X X Mich. Comp. Laws § 206.623MississippiInterest expenses relatedto intangible propertyX Miss. Code Ann. § 27-7-17New Jersey X XN.J. Stat. Ann.§ 54:10A-4.4New YorkInterest expenses relatedto intangible propertyX N.Y. Tax Law § 208.9North CarolinaXN.C. Gen. Stat.§ 105-130.7AOregonInterest expenses relatedto intangible propertyX Or. Rev. Stat. § 314.296Rhode IslandInterest expenses relatedto intangible propertyX R.I. Gen. Laws § 44-11-11TennesseeInterest expenses relatedto intangible propertyXTenn. Code Ann. §§ 67-4-2004 and67 -4-2006Virginia X X Va. Code Ann. § 58.1-402West Virginia X X W. Va. Code § 11-24-4bWisconsinXX(and management fees Wis. Stat. § 71.26and rental expenses)Dist. of Columbia X X D.C. Code § 47-1803.03Source: CCH IntelliConnect, Multistate Quick Answer Charts, Related Party Expense Addback Requirements; and J. Healyand M. Schadewald, 2013 MULTISTATE CORPORATE TAX GUIDE (Chicago: CCH, a Wolters Kluwer business, 2012), at 3217–51.38