With regards to the 50% gross income requirement, a QOZB will be able to meet the test if at least 50% of services are performed (in the OZ). This will be determined by hours worked or amounts paid by employees and independent contractors. The service occurs in an OZ during the taxable year, or if tangible property is located in an OZ, as well as management or operational functions performed in an OZ; each are necessary for the generation of at least 50% of the gross income of the trade or business. Compliance will be tested on a semi-annual basis throughout the duration of the investment.
