P.R. Laws tit. 23, § 575e
(a) The tax credits may be used by the investor in a film entity, or by his assignee, to pay the income taxes determined under §§ 8401 et seq. of Title 13, exclusively. The credit may be claimed or assigned, totally or partially, when:
(1) The accountant certifies that the corresponding items of the budget have been spent or that the bond has been posted, as the case may be, and
(2) the film entity notifies the Commissioner, the Secretary of the Treasury and each investor of the credit amount corresponding to each investor him/herself given the proportion between the amount in cash he/she contributed to the capital of the film entity and the total of tax credits generated thereby.
The notice of distribution of credit among the investors shall be accompanied by the accountant’s certification. Said notice shall contain the information that the Commissioner and the Secretary of the Treasury determine through circular letter or regulations.
(b) Every tax credit not used in a taxable year may be carried over to subsequent years until it is exhausted.
(c) The assignee of a credit shall not assign the credit and may only claim it to pay the taxes described in subsection (a) of this section.
(d) The money or value of the property that the investor receives in exchange for a tax credit, shall be exempted from taxes under §§ 8006 et seq. of Title 13, up to a sum that is equal to the amount of credit transferred. When the amount paid for a credit is less than the amount of the credit, the difference shall not be deemed as income for the assignor, nor a loss for the investor.
(e) The investor and the assignee of tax credits have the obligation to notify the assignment, in writing, to the Commissioner and the Secretary of the Treasury.
(f) To claim tax credits, the investor or the assignee, as the case may be, shall have to attach copy of the following documents to their income tax return:
(1) The license of the film entity in which he/she invested;
(2) notice to the Commissioner, the Secretary of the Treasury and investors of the distribution of credits;
(3) certification of the accountant of the expenses disbursed from the budget or the posting of bond, as the case may be, and
(4) in the case of assignees, notice of assignment remitted to the Secretary of the Treasury and to the Commissioner.
History —Dec. 24, 1999, No. 362, § 19.