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Production Incentives Database

Incentive Type Transferable Non-Refundable Tax Credit
Spend 40%
Above the Line Residents 40-55%
Above the Line Nonresidents 20%
Below the Line Residents 40-55%
Below the Line Nonresidents 20%
Bonus 15% of payments to residents of Puerto Rico, when a local producer controls the IP of the project, is responsible for its financing and production, and is entitled to 30% or more of the “producers’ net”, and either the director, cinematographer, editor, production designer, post-production supervisor, or the line producer is a resident of Puerto Rico.
Project Criteria $100,000 minimum qualified spend per project; $25,000 minimum qualified spend for documentaries and short films

If 50% or more of production is developed in the island, development payments to Puerto Rico resident companies and individuals and nonresident “Above-the-Line” can qualify

For projected credits of less than $1M the applicant must submit a 5 year income projection as well. For projected credits of more than $1M, the applicant needs to submit an economic impact study prepared by an unrelated independent party

Applicant must be in good standing with regards to tax liability
Loanout Registration Required Yes
Loanout Withholding Yes, 20%
Annual Funding Caps $38,000,000
Project Caps None
Minimum Spend $100,000
Sunset Date None
Audit Requirements
An audit by a CPA licensed in Puerto Rico is required. The auditor has a term of 30 days to complete the audit report and submit it to the Puerto Rico Film Commission and Puerto Rico Treasury Department
Getting Started
Contact the Puerto Rico Film Commission with the name of the project, type of project, estimated total budget, estimated Puerto Rico budget, and the production timeline to discuss the project and obtain a Pre-application Conference Letter; submit a Puerto Rico Film Project Grant Application Form to the Puerto Rico Film Commission prior to end of production (or standalone post production ) with required documentation; a filing fee totaling 1% of the Puerto Rico estimated budget is required ($250,000 maximum) with 50% due in order for the grant to become effective.
Screen Credit Required
Company Registration
Sales Use Tax Relief
Hotel Occupancy Tax Relief
Local Vendors Qualify
Outside Vendors Qualify
Claiming Incentive
The Puerto Rico Film Commission and the Puerto Rico Treasury Department will have 30 days to review and approve the Audit Report; the balance of the filing fee is due within 15 working days of receiving certification.

The Film office will take into effect the economic impact, payroll, taxes and more to determine the approval of the credit.

tax credits can be used for 100% of the holder’s tax liability and a carry forward of 4 years (extension can be requested)
Additional Information
Annual rolling cap on payments to Puerto Rico resident companies and individuals is $50 million (may be expanded up to $350 million if incurred partially in a Film Development Zone)

Preproduction, production and/or post production expenses are eligible for tax credit as of the Pre-Application Conference Letter date; if a Pre-application Conference Letter is not obtained, expenses will become eligible for the tax credit from the date the application is filed.

Payments made to nonresidents that qualify for the incentive are subject to 20% withholding over their Puerto Rico sourced gross income.
Nonresidents become residents after 183 days living in Puerto Rico and qualify for the 40% Tax Credit

Tax credit carry forward

Infrastructure Tax Credit of 25% available. Contact the Puerto Rico Film Office for information.

Last updated: 05/01/2020

Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at [email protected].