P.R. Laws tit. 23, § 575
(a) A tax credit shall be granted to investors in a film entity engaged in a film project equivalent to forty percent (40%) of those items of the budget paid to residents of Puerto Rico, as certified in writing by the accountant. However, in the case of a film project consisting of the production of a television program broadcasted or distributed in Puerto Rico and abroad that is not described in § 573(c) of this title, the tax credit granted to investors shall be limited to twenty-five percent (25%) of those items of the budget paid to residents of Puerto Rico, as certified in writing by the accountant contracted by the Commissioner.
The total credit to be granted shall not exceed fifty percent (50%) of the capital paid in case contributed to the film entity in exchange for primary-issue stocks or shares.
(b) Those items in the budget that contemplate the acquisition of assets of which the costs can be capitalized shall not generate credits, except those assets that shall remain in Puerto Rico during their useful life or not less than five (5) years, whichever is less. Said assets shall only be removed from Puerto Rico in a provisional manner incidental to the film project. The Secretary, the film corporation or the Commissioner may require a bond or bank letter of credit from the film entity that acquires these assets, which guarantees the total tax credits generated by the purchase thereof, it being the Secretary who shall be responsible for the custody and withholding of said bond.
(c) Television series and other television programs that due to market demands decide to film phases of additional chapters shall be evaluated as another film project and shall comply with the requirements imposed by this chapter. The experience of the phase or previous phases shall be taken into consideration by the Commissioner in the new evaluation to grant the license with the endorsement of the film corporation.
(d) No tax credit whatsoever shall be granted for those budget items paid to Puerto Rico residents that are paid in cash or by means of any kind of contribution or appropriation from any department, agency, administration, bureau, board, commission, office, instrumentality, public corporation or municipality of the Commonwealth of Puerto Rico, as well as the Legislative Branch. Thus, any incentive, appropriation, subsidy or any other kind of contribution from these entities used to pay budget items paid to Puerto Rico residents shall not qualify for the tax credit.
History —Dec. 24, 1999, No. 362, § 14; May 4, 2007, No. 41, § 4; Aug. 19, 2009, No. 81, § 2.