Particularly in relation to U.S. tax incentives for investing in Opportunity Zones, the term Original Use Commencement Date typically refers to the date on which a particular property located within an Opportunity Zone begins its original use with respect to the QOF or the date when the QOF first puts the property into service in its trade or business.
Under the Opportunity Zone program, there are certain requirements that assets or properties must meet to qualify for the associated tax incentives. One such requirement is related to the “original use” of tangible property. The property must either:
- Have its “original use” commence with the QOF, or
- Be substantially improved by the QOF.
The Original Use Commencement Date thus serves as a reference point to determine if the property’s use within the zone by the QOF is indeed its original use.
It’s worth noting that Opportunity Zone regulations and guidelines can be complex, and there are nuances to each provision. Investors, businesses, and other stakeholders should consult with tax professionals or legal experts familiar with the Opportunity Zone program to ensure proper compliance and understanding of all relevant terms and conditions.