The 10-Year Holding Period in the context of the Qualified Opportunity Funds (QOF) refers to the minimum length of time that an investment must be held in a QOF to reap the full benefits of the program’s tax incentives.

The QOF program was established by the U.S. Tax Cuts and Jobs Act of 2017 to encourage long-term investment in economically distressed communities, also known as Opportunity Zones. There are several tax advantages associated with investing in a QOF, and they are generally tied to how long the investment is held:

Temporary Tax Deferral: An investor can defer tax on any prior gains invested in a QOF until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026.
Step-Up In Basis: The basis is increased by 10% if the investment in the QOF is held for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.
Permanent Exclusion From Taxable Income of Future Gains: If the investment is held for at least 10 years, the investor is eligible for an increase on basis equal to the fair market value of the investment on the date that the QOF investment is sold or exchanged.

Therefore, the 10-Year Holding Period is the term of investment needed to access the maximum tax advantages provided by the QOF program. Please note that tax regulations can be complex and subject to change, and it is always recommended to consult with a tax professional or attorney when dealing with such matters.