Public Law 86-272 is a federal law that prohibits states from imposing an income tax if a company’s only activity in the state is the solicitation of orders for sales of tangible personal property, as long as the orders are approved and shipped from outside the state. This provides [nexus protections](https://www.irs.gov/pub/irs-drop/n-20-75.pdf) for companies without other physical presences like property or payroll in the state. However, PL 86-272 does not apply to sales of services or certain other activities.
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