PRODUCTION INCENTIVES

Puerto Rico

Type of Incentive:	Transferable film and infrastructure tax credits (unlimited carry forward, 1 transfer only)

Maximum Benefit:	40% of qualifying local film spend, and for infrastructure projects, the lesser of 40% of the cash investment or 20% of the budget

Compensation and Project Caps/ Funding Per Year:	50% of the cash invested as equity in the film project; $15,000,000 per year (project cap can be raised on a per project basis)

Project Criteria:	≥ 50% of principal photography must be local OR local spend ≥ $1,000,000; minimum budget for short-subject films = $100,000, for series = $1,000,000; for infrastructure projects, budgets > $5,000,000 qualifying spend or investment ≥ 25% of existing FMV

Sunset/Review:	December 31, 2019

Application Considerations:	Fee = 1% of budgeted Puerto Rico spend upon initial application approval; submit initial application before production commences (response ≤ 30 days)

Loan-Out Company Considerations:	Currently none to note

Crew Base Considerations:	Crew directory available

Film Commission:	Puerto Rico Film Commission P.O. Box 362350 San Juan, PR 00936 Mariella Pérez-Serrano, Ph.D. Executive Director Phone: 787.758.4747 ext. 2251 Fax: 787.756.5706

Qualified Production Expenditures

In-State Vendors:	YES
Out-of-State Vendors:	NO (confirm with local Film Office)

Fringes Paid for Qualified Payroll:	YES

Taxes Paid for Qualified Payroll:	YES (local taxes qualify)

* Please read the Qualified Production Expenditures Introduction & Assumptions.

Qualified Compensation Expenditures

Above-the-Line:	Residents:	YES
Above-the-Line:	Non-Residents:	NO

Below-the-Line:	Residents:	YES
Below-the-Line:	Non-Residents:	NO

* Please read the Qualified Compensation Expenditures Introduction & Assumptions.

Nontraditional Programming

Talk Shows:	YES (25% rebate)	News:	NO

Reality Shows:	YES (25% rebate)	Webisodes:	NO

Game Shows:	YES (25% rebate)	Animation:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Documentaries:	YES	Commercials:	POSSIBLE (call Film Office for review)

Industrials:	POSSIBLE (call Film Office for review)	Music Videos:	POSSIBLE (call Film Office for review)

Sporting Events:	NO	Interactive Media/ Video Games:	POSSIBLE (call Film Office for review)

* Please read the Qualified Nontraditional Programming Introduction & Assumptions.

Updated June 11, 2010
For more specific information, please contact the EP Production Incentives Group.

NOTE: These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact the EP Production Incentives Group or your legal or tax advisors to confirm any laws or the effect of incentives on your project.