Search
Filming Projects
Tax incentive for film and audiovisual production projects in Puerto Rico, providing tax credits and benefits for qualifying production spending.
12 min
•
Section Code:
2091.01(a)(1)
•
Purpose:
Creative Industries — 2091.01(a)(1)
Overview
The Filming Projects designation under Section 2091.01(a)(1) of Act 60-2019, as amended, provides tax incentives for film and audiovisual production projects that shoot or complete significant work in Puerto Rico. This designation is the primary pathway for production companies seeking tax benefits for specific film, television, or digital content projects.
Qualifying productions may receive preferential tax treatment based on qualifying production expenditures in Puerto Rico. The program attracts feature films, television series, documentaries, commercials, and other audiovisual projects that can utilize Puerto Rico's diverse locations, production infrastructure, and skilled crew base.
The key distinction of this designation is its project-based structure. Unlike designations for permanent studios or ongoing businesses, the Filming Projects designation provides benefits tied to specific production projects with defined budgets and timelines. Productions must meet minimum spending thresholds and complete significant work in Puerto Rico.
Puerto Rico offers diverse filming locations ranging from historic Old San Juan to tropical beaches, rainforests, and urban environments. The territory's bilingual crew base and proximity to the U.S. mainland make it an attractive production destination.
Key Benefits
Production Incentive Credits
Qualifying productions may receive tax credits or other incentives based on a percentage of qualifying production expenditures in Puerto Rico. The specific percentage and structure depend on production type and current program parameters. Credits may be transferable or refundable depending on program terms.
Corporate Income Tax Benefits
Production companies operating under decree may receive reduced corporate income tax rates on production income. The specific rate depends on production type and decree terms.
Property and Equipment Tax Relief
Productions may benefit from exemptions on equipment rentals, production supplies, and other assets used in filming. This reduces the effective cost of production in Puerto Rico.
Customs and Import Benefits
Temporary importation of production equipment may receive favorable customs treatment. This facilitates bringing specialized equipment to Puerto Rico for production.
Locations and Infrastructure Access
The Puerto Rico Film Commission provides support for location scouting, permitting, and coordination with local resources. This support, combined with tax benefits, enhances Puerto Rico's competitiveness as a filming location.
Requirements & Obligations
Minimum Spending Requirements
Productions must meet minimum qualifying expenditure thresholds in Puerto Rico to participate in the program. Thresholds vary by production type and are specified in current regulations. Qualifying expenditures typically include payments to Puerto Rico vendors, crew, and service providers.
Production Registration
Productions must register with the Puerto Rico Film Commission and comply with applicable regulations. Registration should occur before commencing significant production activities.
Puerto Rico Production Activities
A substantial portion of production activities must occur in Puerto Rico. This may include principal photography, post-production, or other significant production phases. The specific requirements depend on production type and requested benefits.
Local Hiring and Purchasing
Productions should utilize Puerto Rico crew members, vendors, and services to the extent practical. Local hiring and purchasing requirements may be specified as conditions of receiving benefits.
Documentation and Auditing
Productions must maintain detailed records of qualifying expenditures and be prepared for audit of claimed expenses. Professional accounting of production costs is essential for compliance.
Completion and Delivery
Productions must complete principal photography or other specified milestones and deliver required reports and certifications to claim benefits.
How to Apply
The application process for Filming Projects incentives should begin during pre-production planning, typically three (3) to six (6) months before principal photography.
The process begins with project assessment and budget analysis. Production companies should evaluate whether the project meets minimum spending thresholds and how much of the production can practically be completed in Puerto Rico. Consultation with the Puerto Rico Film Commission during development can help optimize the production plan.
During pre-production, companies register the project with the Puerto Rico Film Commission and submit preliminary applications. This includes project descriptions, budget breakdowns identifying qualifying expenditures, production schedules, and crew and vendor plans. Early registration helps ensure benefits are available and allows time for planning.
The Film Commission reviews applications and provides preliminary certification of eligibility. This certification guides production planning and may be required for financing or distribution arrangements.
During production, companies must maintain detailed records of expenditures and comply with local hiring and purchasing requirements. Regular reporting to the Film Commission may be required for larger productions.
After production completion, companies submit final reports and audited expenditure certifications. The Film Commission reviews documentation and issues final certification of qualifying expenditures, which is used to claim applicable credits or benefits.
Benefits are typically claimed through the tax filing process or through transfer mechanisms specified in program rules.
This information is educational and should not be considered legal or tax advice. Applicants should consult with qualified legal and tax professionals familiar with Puerto Rico incentive programs before making any business decisions or submitting applications.
Ready to Get Started?
Let our AI analyze your business profile and instantly identify all incentives you qualify for across every Act 60 chapter.
