REV-986: Schedule to Support Claim of Exemption from Corporate Net Income Tax Under P.L. 86-272 (REV-986) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
REV-986 is a schedule supporting a claim of exemption from Pennsylvania corporate net income tax under P.L. 86-272. It asks about business activities and property in Pennsylvania and requires a complete description of all Pennsylvania business activities.
Who files this form
REV-986 supports a corporation’s claim of exemption from Pennsylvania corporate net income tax under P.L. 86-272.
Taxpayers claiming this exemption must include a complete description of all Pennsylvania business activities. Those also reporting property owned or rented in Pennsylvania must describe that property.
What you'll need
The form asks for:
- Corporation name, FEIN, and tax year beginning and ending dates.
- Information about the corporation’s activities, personnel, property, sales, services, and other business connections covered by the questionnaire.
- A complete description of all Pennsylvania business activities.
- A description of property owned or rented in Pennsylvania if the taxpayer reports that property while claiming the exemption.
Common mistakes
- Leaving out the business activity description. The form requires a complete description of all Pennsylvania business activities.
- Leaving out the property description. Taxpayers reporting property owned or rented in Pennsylvania while claiming the exemption must describe that property in the space provided.
Questions people ask
What is REV-986 used for?
It supports a claim of exemption from corporate net income tax under P.L. 86-272.
Does the form ask about work done by independent contractors?
Yes. Several questions cover activities performed by the taxpayer or an independent contractor hired by the taxpayer, including repairs, installation, picking up or replacing damaged or returned property, investigating warranty claims, and collecting accounts.
Does the form ask about employees working remotely in Pennsylvania?
Yes. Question 23 asks about telecommuting employees in Pennsylvania whose activities go beyond soliciting orders for sales of tangible personal property or activities entirely ancillary to that solicitation.
Do I need to describe Pennsylvania business activities as well as answer the questions?
Yes. The form requires a complete description of all Pennsylvania business activities. It also requires a property description if you report property owned or rented in Pennsylvania while claiming the exemption.