Puerto Rico Production Tax Incentives

Overview

  • Puerto Rico offers a transferable tax credit equal to 40% of resident payroll & local, non-payroll spend and 20% on non-resident labor subject to 20% withholding. The applicant is required to pay a mandatory filling fee equivalent of 1% of the production expenses of Puerto Rico, up to a maximum rate of $250K.
  • The first 50% payment of the filing fee must be paid within 30 working days from the date the decree was issued. Qualified producer fees are capped at 10% of the total Puerto Rico production expenses.

Eligible project types: Award shows, beauty pageants, documentaries, feature/full length films, film festivals, game shows, music videos, news, pilots, reality TV, scripted TV, short films, standalone post production, variety shows, video games.

Incentive details

Type
Transferable tax credit.
Rate
40% on resident labor and non-payroll spend; 20% on non-resident labor.
Uplift(s)
None
Annual Cap
$38M
Project Cap
TV: $100K / Doc, film festivals, live events, music videos: $50K / Standalone post production: $500K
Compensation Cap
Qualified producer fees are capped at 10% of the total Puerto Rico production expenses.
Eligible Expenses
Pre-production, production, and post production expenditures and labor incurred in Puerto Rico.
Additional Info
Non-residents become residents after 183 days living in Puerto Rico, and they then qualify for the 40% tax credit.

Requirements

Minimum Spend
TV, feature films: $50K / short films, docs, live events: $25K
Local Hire Requirement
Yes
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
20% (non-residents)
Application Timing
Applications must be submitted through the online portal before the end of principal photography. Following an approval, the DEDC secretary will issue the film project a decree of tax credits. For the decree to become effective, the applicant is required to pay a mandatory filling fee equivalent of 1% of the production expenses of Puerto Rico, up to a maximum rate of $250K. The first 50% payment of the filing fee must be paid within 30 working days from the date the decree was issued. The 50% of the filing fee must be presented with a dually notarized sworn statement accepting the decree. Failure to present evidence of payment and an acceptance of the decree shall deemed as a revocation of the decree and the tax credits reserved shall be forfeited. Principal photography must begin with 120 days of the issuance of the decree.
Audit
CPA audit required. Audit report is due within 90 days of wrap.

How to Apply

Application
Application Timing
Puerto Rico Film Office

CARLA CARDONA, FILM INDUSTRY TAX INCENTIVES ATTORNEY, 787-399-1470, CARLA.CARDONA@DDEC.PR.GOV
Puerto Rico Film Commission | Incentives & Production Support

Helpful Links

Puerto Rico: A World of Opportunities
CC 2021-005 CINE[1].pdf

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