Tax Incentives & Grants - Puerto Rico

Puerto Rico, as a U.S. territory, offers one of the most competitive film production incentive programs in the Americas. Its combination of substantial tax credits, modern infrastructure, and a skilled bilingual workforce makes it a sought-after destination for both Hollywood and independent filmmakers.

Puerto Rico’s 40% tax credit, combined with its diverse locations, bilingual workforce, and film-friendly environment, makes it one of the most attractive destinations for filmmakers in the Americas. As a U.S. territory, it offers unique advantages for American productions, including federal tax exemptions and compliance with U.S. labor laws. With strong government support and world-class infrastructure, Puerto Rico continues to position itself as a global hub for film and television production.

  • Tax Credits Overview

    Puerto Rico offers up to 40% tax credits on eligible production expenditures, making it highly attractive for film, television, music videos, and digital content production.

    Production Tax Credit

    • 40% Tax Credit:

      • Applied to all qualified production expenditures incurred in Puerto Rico.

    • Eligible Expenses:

      • Salaries and wages for Puerto Rican residents.

      • Local vendor services, equipment rentals, location fees, transportation, lodging, and catering.

      • Post-production costs incurred within Puerto Rico.

    • Non-Resident Tax Credit:

      • A 20% tax credit is available for non-resident talent working in Puerto Rico.

    Infrastructure Tax Credit

    • 25% Tax Credit:

      • Available for companies that invest in building or improving film-related infrastructure in Puerto Rico, such as studios, post-production facilities, or sound stages.

    Development Tax Credit

    • 50% Tax Credit:

      • For local Puerto Rican script and project development expenses.

    Application and Redemption

    • Tax credits can be applied against Puerto Rican taxes or sold to third parties (transferable tax credits), allowing productions to convert the credit into direct cash value.

  • Minimum Spend

    • A minimum production spend of $500,000 is required for feature films and TV projects to qualify for incentives.

    • Music videos and short-form content require a minimum spend of $100,000.

    Local Talent and Crew

    • Productions must utilize Puerto Rican talent and crew for at least 20% of the total workforce to qualify for maximum incentives.

    Screen Credit

    • Productions benefiting from the tax incentives must acknowledge Puerto Rico’s support in the final credits with the phrase:
      "Filmed in Puerto Rico with the support of the Government of Puerto Rico."

    Cultural Contribution

    • Projects must comply with Puerto Rico’s Cultural Test to ensure they align with the territory’s economic and cultural goals.

  • Steps to Apply

    1. Pre-Approval:

      • Submit an application to the Puerto Rico Film Commission (PRFC) at least 45 days before production starts.

      • Provide a detailed production budget, shooting schedule, and anticipated local expenditure.

    2. Compliance Review:

      • Production must adhere to workforce and spend requirements, verified by a third-party audit post-production.

    3. Tax Credit Issuance:

      • Once the project is completed and expenditures are audited, the tax credit is issued.

    4. Monetization:

      • The credit can be applied to local taxes or sold to other companies for cash.

    Processing Timeline

    • The average timeline for approval and disbursement of credits is 60–90 days after submission of audited accounts.

    • Expanded Tax Credits:

      • In 2022, Puerto Rico increased its tax credit cap to accommodate a growing number of international productions.

    • Rising Global Profile:

      • With productions such as "Fast & Furious 8" and "Fantasy Island" filmed on the island, Puerto Rico is cementing its position as a go-to filming location.