INFRASTRUCTURE TAX CREDITS
• 25% tax credit on development or expansion costs of studios, laboratories, post-‐production, animation and special effects facilities, transmission facilities and related infrastructure
• Minimum investment of $1 million per project
• Maximum aggregate annual cap of $10 million and lifetime cap of $150 million for all infrastructure credits. Such credits shall only be available when a project is completed and ready for use and may be carried forward only if the corresponding project is in operation pursuant to the terms of its grant
PREFERENTIAL TAX TREATMENT
Persons engaged in qualifying infrastructure projects as well as operators of studios and other purpose-‐built media facilities with a budget equal to or greater than $50 million (including their suppliers) are eligible for the following preferential tax rates or exemptions:
Fixed income tax rate of between 4% and 10%
100% exemption on dividend taxes
90% exemption from municipal and state taxes on property
100% exemption from municipal license taxes, excise taxes and other municipal taxes
FILM DEVELOPMENT ZONES
To further incentivize the development of high-capacity production studios, the Commonwealth of Puerto Rico may designate certain geographic areas as Film Development Zones.
Qualifying media projects incurring a portion of their expenses with such zones shall also be eligible for expanded annual credit caps on all payments to Puerto Rico Resident companies and individuals beyond the initial $50 million of: (1) $50 million; (2) an additional $150 million, if the investment in the studio located within such zone exceeds $200 million; and (3) a further $100 million if the caps described above are reached for two consecutive years.