P.R. Laws tit. 23, § 575a
(a) Fifty percent (50%) of the tax credit provided in § 575 of this title shall be available to the investor in the taxable year in which the accountant certifies to the Commissioner and to the Secretary of the Treasury that forty percent (40%) or more of the Budget to be paid to the residents of Puerto Rico has been disbursed, and the provisions of this chapter have been met. The Secretary of the Treasury, however, may advance the date of availability of said portion of the tax credit, if the film entity posts a bond or bank letter of credit or surety in which the Secretary of the Treasury is designated as beneficiary. In this case, said portion of the tax credit shall be available on the date said surety is posted with the Secretary of the Treasury.
(b) The availability of the remaining fifty percent (50%) of the tax credit, or of the full tax credit if no advance was given, shall be available to investors within the taxable year in which the accountant certifies to the Commissioner and to the Secretary of the Treasury, the total number of budget items paid out to residents of Puerto Rico and the cash capital contributed to the film entity in exchange for primary-issue stock or shares. The Secretary of the Treasury shall confirm by letter to the film entity or its representative, the amount of tax credits available for the film entity investors within thirty (30) days as of the date of receipt of the accountant’s certification. This term shall be considered to be interrupted when the Secretary of the Treasury requests additional information. However, upon interruption of term and upon furnishing the information thus requested, the Secretary of the Treasury shall have a maximum term of only sixty (60) days as of the date of receipt of accountant’s certification to issue the tax credit certification, provided, that the Department has all documents to be evaluated available.
(c) The amount of the credit available under subsection (b) of this section shall be the difference between the tax credit to which the investor is entitled under § 575 of this title and any advance made by the Secretary of the Treasury.
(d) As for episode serials, the Secretary of the Treasury, following the recommendation of the Commissioner and the Secretary of Economic Development and Commerce, may authorize granting tax credits in stages, when the nature and importance of the project so warrants and the film entity complies with all requirements set forth in this chapter.
(e) The certificate issued by an accountant on or before the deadline, including time extensions, to file the income tax return of the film entity investors, shall be deemed as issued within the taxable year for which the income tax return is being filed. The same treatment shall be given when advances are made under subsection (a) of this section, upon posting of surety with the Secretary of the Treasury.
History —Dec. 24, 1999, No. 362, § 15; July 15, 2008, No. 110, § 5.