What is the Puerto Rico film tax incentive rate?

Puerto Rico offers 40% on qualified in-state spend through the Act 60, Chapter 9. It is a transferable credit. A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.

What is the minimum spend for the Puerto Rico film incentive?

$50K per project ($25K short films/documentaries). Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.

Is the Puerto Rico film incentive transferable or refundable?

Transferable — the credit can be sold, typically below face value, so model the net rather than the headline rate.

Transferable creditHuman verified· 2026-08-31Active

Puerto Rico film tax incentive

Act 60, Chapter 9

Headline rate

40%

Minimum spend

$50K per project ($25K short films/documentaries)

What Puerto Rico actually pays

A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.

New to the mechanics? Tax credit vs rebate vs grant, Selling a transferable credit and What counts as qualified spend.

What qualifies

Min $50K PR spend ($25K short/doc). No principal-photography requirement (pre-prod/partial qualifies). Non-resident talent qualifies at 20% with mandatory 20% withholding. Resident producer fees capped at 10% of PR budget. Credits >$1M require independent economic-impact study; <$1M require 5-yr income projection.

Animation
Commercial
Miniseries
Short Film
Documentary
Music Video
Scripted TV
Feature Film
Post-Production
Streaming / SVOD
Soundtrack / Music
Reality / Unscripted
Video Game / Interactive

How to apply

Apply online via PR Single Business Portal (ogpe.pr.gov/freedom) before end of principal photography. Filing fee = 1% of PR budget (max $250K), 50% due within 30 working days of decree. CPA Agreed-Upon-Procedures audit report due 90 days after wrap. Not first-come; evaluated on economic impact.

The rule to remember

40% on PR residents / 20% on qualified non-residents; transferable (not refundable), sells ~85-92c; 20% withholding required on non-resident payments.

Common questions

What is the Puerto Rico film tax incentive rate?: Puerto Rico offers 40% on qualified in-state spend through the Act 60, Chapter 9. It is a transferable credit. A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.
What is the minimum spend for the Puerto Rico film incentive?: $50K per project ($25K short films/documentaries). Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.
Is the Puerto Rico film incentive transferable or refundable?: Transferable — the credit can be sold, typically below face value, so model the net rather than the headline rate.

Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.

QUICK CALCULATOR

What could Puerto Rico be worth?

A first-pass estimate with the arithmetic shown, so you can check it rather than trust it. Switch states right here to test the same budget elsewhere, or line up to five states up side by side on the compare page.

Compare with

Programs in a similar rate band. The mechanism matters as much as the percentage — a transferable credit at 30% is not the same money as a cash grant at 30%.

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Tracking changes to this program?

We re-verify Puerto Rico against the film office and the statute, and write when something moves that would change a budget. One email, no cadence you didn't ask for.