Puerto Rico will further boost its location appeal with its expanded film law
RESTORE GROWTH INCENTIVES
Click to edit Master text styles
Economic incentives for the development of the film industry •
Production incentives – – –
–
•
Infrastructure incentives – – –
•
40% tax credit on PR production expenditures 20% tax credit on production expenditures on non-resident talent provided they are subject to income taxation in PR Expand definition of qualifying media projects to include: (1) feature and short films; (2) documentaries; (3) series in episodes, mini series, and similar television programs; (4) music videos, (5) national and international commercials; (6) video games; (7) recorded live performances and; (8) original sound track recordings Increase annual aggregate cap from $15 MM to $50 MM for PR production expenditures 25% tax credit on costs for development or expansion of infrastructure projects Minimum hard costs of $5 MM Maximum aggregate annual cap of $10 MM and lifetime cap of $150 MM for all infrastructure credits
Film Development Zone – PPP Operational Structure –
Persons engaged in this qualifying media and infrastructure projects, as well as the operator of the large-scale studio within the FDZ shall be eligible for favorable tax treatment: • 4% fixed income tax rate • 100% exemption on dividends • 90% exemption from municipal and state taxes on property • 100% exemption from municipal license taxes, excise taxes and other municipal taxes 50