The 70% asset test (and the applicable related party purchase rules) only applies to tangible property. The OZ rules are silent on related party transactions when the QOZB acquires intangible property from a related party. Additionally, the 40% use requirement requires at least 40% of QOZB intangible property be used in the active conduct of a business in an OZ. To be “used in the active conduct of a trade or business” in an OZ, the use of the intangible property must be normal, usual or customary in the conduct of the trade or business and the intangible property must be used in the OZ in the performance of an activity of the trade or business that contributed to the generation of gross income for the trade or business. As long as the usage of the software is “normal, usual or customary” in the conduct of the trade or business, it appears it can be counted for purposes of meeting the 40% use requirement.
