[sweis]

You can't just base a business in a QOZ and call it a QOZB. It needs to generate 50% of its gross income from within the zone and 40% of its intangible property (e.g. software) must be used for business within a zone.

Further, there are restrictions on what kind of business it can be. It can't be, for example, a golf course or a liquor store.

[ryan_j_naughton]

The "50-percent of gross income test" is actually that you have to meet 1 of 3 standards[1]:

Qualified Opportunity Zone Business QOF 50-percent of gross income test Q56. What is the 50-percent-of-gross-income test?

A56. Each taxable year, a QOZ business must earn at least 50 percent of its gross income from business activities within a QOZ. The regulations provide three safe harbors that a business may use to meet this test. These safe harbors take into account any of the following—

- Whether at least half of the aggregate hours of services received by the business were performed in a QOZ;

- Whether at least half of the aggregate amounts that the business paid for services were for services performed in a QOZ; or

- Whether necessary tangible property and necessary business functions were located in a QOZ.

Q57. Must a QOZ business meet all three safe harbors to satisfy the 50-percent-of-gross income test?

A57. No. A QOZ business satisfies the 50-percent-of-gross income test if it satisfies any one of these safe harbors. For example, if 50 percent or more of all the hours of services that a business receives and uses were performed in one or more QOZs, then the business satisfies the hours of services received test and, therefore, satisfies the 50-percent-of-gross-income test.

[1] https://www.irs.gov/credits-deductions/opportunity-zones-fre...

[modeless]

Seems like you can, as long as you work in the office 50% of the time ("at least 50% of the hours worked by partners, contractors, and employees could take place in an OZ"), and the IP seems to be addressed by this quote from the article: "The IRS’ Final Regulations on QOZB’s gave a rather interesting but nuanced example of an intellectual property holding company with a headquarters in an QZ which DID qualify as a QOZB despite concerns about the 40% intangible property rule. This is a very relevant example for many tech companies [...]"

I'm not going to go read the IRS regulations because I'm not actually planning to implement this scheme but it seems plausible that it might work. As long as there isn't another COVID forcing everyone to work from home...