P.R. Laws tit. 23, § 11004
(a) A person may obtain a grant in connection with the development of an infrastructure project.
(b) The acquisition of machinery or equipment to be used or installed in an infrastructure project may be considered as part of the Puerto Rico production expenditures. Said machinery and equipment shall remain in Puerto Rico during its useful life or not less than five (5) years, whichever is less, starting from the date of acquisition. Said assets shall only be removed from Puerto Rico in a temporary manner incidental to a film project. The Secretary of the Treasury or the Secretary of Development shall require a bond from the grantee that acquires the machinery and equipment in order to secure the total of the tax credits that have been generated by the purchase thereof. The bond shall name the Secretary of the Treasury as the beneficiary and shall be reduced annually in a proportional manner. For purposes of this subsection, any machinery or equipment located in Puerto Rico that is not physically located in the infrastructure project, but that shall serve solely such project, and which meets all other requirements as established by the Secretary of Development through regulation or circular letter may be treated as Puerto Rico production expenditures.
(c) In order for a substantial expansion to qualify as an infrastructure project, the grantee must carry out an expansion of the existing studios, studio, or large-scale studios, laboratories or facilities whose investment is equal to at least twenty-five percent (25%) of the fair market value of the existing physical plant prior to said substantial expansion. The cost of the land shall not be part of the value considered for purposes of the twenty-five percent (25%).
History —Mar. 4, 2011, No. 27, § 5.1; July 13, 2012, No. 140, § 5.