PUERTO RICO
Puerto Rico offers a generous tax benefit: 40% of the monies paid to Puerto Rican
citizens, to a maximum of 50% of the equity invested in a picture, is rebated in the
form of a tax credit. There is a market for these credits, at discounts of 8% to 15%.
At least 50% of the film must be shot in Puerto Rico.
A maximum of $15 million is available per year. With a completion bond in place, a
credit of 50% of the budget may be available when the investment is made. Absent a
bond, 50% of the credit may be made available when a government-appointed CPA
certifies that 40% of the money budgeted for Puerto Rican citizens has been paid.
Much of the needed equipment and crew is available locally.
An online resources database is provided on the film commissionís website. Projects
must be endorsed in advance by the Puerto Rico Film Commission and approved by
the Secretary of the Treasury.

Up to a 40% investment tax credit is available for motion picture and television expenditures paid to Puerto Rico Businesses or below the line talent if at least 50% principal photography is in Puerto Rico.

The credit is available for projects first approved by the Film Commission once applicants pay _ of 1% of the filmís budget for a license.

Local investors will partner with non-Puerto Rican based companies to help them access the investment tax credit.

Film Commission
Incentives

Laura A.ÝVelez
Executive Director
Puerto Rico Film Commission

 PHYSICAL ADDRESS:
 355 F.D. ROOSEVELT SUITE 106
 HATO REY, PUERTO RICO 00918
 T (787) 758-4747 EXT. 2251
 T (787) 754.7110
F (787) 756.5706

 POSTAL ADDRESS:
 P.O. BOX 362350
 SAN JUAN, PUERTO RICO 00936-2350
 
 

Phone:Ý787-754-7110 | Fax:Ý787-756-5706 |
Email:Ýlavelez@preda.com
or lavelez@pridco.com
 

Staff: Louis De Moura, demoura@preda.com Marvin Crespo, crespo@preda.com
 

Incentives:
LAW FOR THE DEVELOPMENT OF THE FILM INDUSTRY
 Act No. 362 of December 24, 1999

 The Puerto Rico Law for the Development of the Film Industry provides benefits in the form of investment tax credits and tax exemptions to investors, producers, and developers of film projects and industry related infrastructure projects. Eligible projects must apply for a license with the Puerto Rico Film Commission. Projects must also be endorsed by the Puerto Rico Film Commission and approved by the Department of the Treasury.

 The maximum available per year in tax credits is $15,000,000, but the Secretary of the Treasury is allowed to make exceptions based on the merits of particular projects. Tax credits may be sold or otherwise transferred by the investor to any person or entity, which may in turn apply the value of the tax credit against its Puerto Rico income tax liability. A market exists for the purchase and sale of tax credits. Tax credits are generally sold at a discount ranging between approximately 8% and 15% during the income tax season...........READ MORE
 

Act 121 - Local Puerto Rico Film Industry Fund
INCLUDES DOWNLOADS FOR:
LOCAL PUERTO RICO FILM INDUSTRY FUND -
Rules and Regulations Code (espanol)
Financing Application (espanol)

The Corporation for the Development of Arts, Science and Film Industry in Puerto Rico was created through Act 121, August 17, 2001. Its objective is to promote the development of the film industry in Puerto Rico by providing the necessary incentives to stimulate the development and expansion of film production on the Island.

 To reach this objective, Chapter VII of Act 121 created the Local Film Industry Fund. This Fund provides financing opportunities that in hand, serve to stimulate all activities related to film production as specified in the Fundís rules and regulations code.

 The Fund works to achieve a balance in efforts to receive loans for local film production and the promotion of quality projects. It is our belief that successful film productions result from following an adequate development, structuring and planning process.
 We in the Puerto Rico Film Commission are committed to assist in a concrete and real way providing the resources necessary to achieve this goal.
 
 

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