There is a $50,000 minimum qualified spend per project and a $25,000 minimum qualified spend for documentaries and short films.

There are no principal photography requirements needed to qualify.

Partial, non-full or even pre-production may qualify on its own.

If 50% or more of production is developed on the island, development payments to Puerto Rico resident companies and individuals, as well as nonresident above-the-line, can qualify.

For projected credits of less than $1,000,000, the applicant must submit a five-year income projection as well. For projected credits of more than $1,000,000, the applicant needs to submit an economic impact study prepared by an independent party.

Applicant must be in good standing with regard to tax liability.

Acceptance is not offered on a first-come, first-served basis; the Film Office will take into account the economic impact, payroll, taxes and more to determine the approval of the project.

Submit your application online before the end of principal photography with the corresponding documents requested in the application for the Puerto Rico Film Commission to evaluate your project in a timely manner. 

The applicant is required to pay a mandatory filling fee equivalent of 1% of the production expenses in Puerto Rico, up to a maximum rate of $250,000. The first, 50% payment of the filing fee must be presented to the DEDC Secretary within 30 working days from the date the decree was issued. The 50% of the filing fee must be presented with a duly notarized sworn statement accepting the decree. Following the payment and acceptance of the decree, the applicant must begin principal photography within 120 days of the issuance of the decree. This term may be extended with evidence of reasonable cause.

The annual rolling cap on payments to Puerto Rico resident companies and individuals is $50,000,000, and it may be expanded up to $350,000,000 if costs are incurred partially in a Film Development Zone.

Payments to Puerto Rico residents for production fees or similar budgetary items will be capped to 10% of the project’s Puerto Rico budget for purposes of computing the film tax credits.

Pre-production, production, and post-production expenses are eligible for the tax credit as of the Pre-Application Conference Letter date; if a Pre-application Conference Letter is not obtained, expenses will become eligible for the tax credit from the date the application is filed.

Payments made to non-residents that qualify for the incentive are subject to 20% withholding over their Puerto Rico sourced gross income.

Non-residents become residents after 183 days living in Puerto Rico, and they then qualify for the 40% tax credit.

There is an infrastructure tax credit of 25% available. Contact the Puerto Rico Film Office for information.