|Incentive Type||Transferable Non-Refundable Tax Credit|
|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.|
$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|
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)
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].