|July 5, 2018||Comments Closed|
The Puerto Rico Film Act, which provides tax incentives for film productions and was set to expire on June 30, 2018, was extended by the Puerto Rico Legislature until June 30,2019.
Additionally, Puerto Rico’s Fiscal Agency and Financial Advisory Authority (“AAFAF”) issued Administrative Order 2018-10, derogating previously issued administrative orders. Said Order has the effect of dissolving the Committee for Authorization and Disbursement of Tax Credits and of removing the controversial 25% limitation rule which retroactively imposed limits on the use existing and pending credits to 25% of the user’s tax liability.
Still under evaluation by the Legislature is the proposed Incentives Code which would codify all existing incentives, including film incentives. If passed without changes, the new Incentives Code would substitute tradeable tax credits for cash grants for productions that incur in eligible expenses in Puerto Rico.