1

PREPARE THE DETAILS OF YOUR NEXT QUALIFYING PROJECT

CereProds is available and happy to help at any stage of the application procedure. Please contact us at any point during the application process if you have any questions.

2

CONTACT US TO DISCUSS YOUR FILM PROJECT: 

We can answer any questions on the production tax credit program and application process  as  well  as  provide  you  with  valuable  assistance in scouting, budgeting, production resources, location permits and logistics.

3

OBTAIN A PRE-APPLICATION CONFERENCE LETTER: 

The  Pre-application Conference Letter sets forth the date when  you  have  expressed  your  intent  to  apply  for production tax credits. Preproduction, production and/or postproduction expenses will become eligible for production tax credits from this date. If you do not obtain a Pre-application Conference Letter, expenses will become eligible for production tax credits from the date you file the application.

In order to obtain a Pre-application Conference Letter, you must provide the following information:

  • name of the film project

  • type of project

  • estimated total budget

  • estimated Puerto Rico budget

  • production schedule

4

FILE THE APPLICATION: 

Complete  and  submit  the application, along with all required supporting documentation. When preparing the application, please follow all instructions set forth therein as well as the program rules. You must file the application before  the  end  of  principal  photography (or postproduction, in the case of standalone post-production).

5

REVIEW AND APPROVAL OF THE APPLICATION:

After application authorities have five working days to review the application to ensure compliance with  all  eligibility  requirements  as  set  forth in the applicable statute and program rules. If the applicable film project is deemed eligible and passes initial approval by the film commission,  the application is then forwarded to the Puerto Rico Treasury Department for final review. The Puerto Rico Treasury Department will have 15 working days to review the application to ensure the  good  standing  of  persons  applying  for  the  credit and certify the availability of tax credits.

6

OBTAIN YOUR TAX GRANT

Once the Puerto Rico Treasury Department approves the application, production must pay the mandatory filing fee of 1% of your Puerto Rico estimated budget. You will be provided the tax grant, contract between you and the Commonwealth of Puerto Rico confirming the production tax credits reserved and tax benefits granted to the applicable film project.

7

LET’S ROLL

While you may begin your film project at any time during the application process, you have a maximum of 30 days after the grant has become effective to begin principal photography (or postproduction, in the case of standalone post).

8

PREPARE AUDIT REPORT

All productions are expected to present an audit report in conformity with the parameters set forth in Circular No. 12-08 Film Project Application Protocols & Validation of Puerto Rico Production Expenses to obtain production tax credits. Once film accounts have been handed over to the auditor, there will be a term of 30 days to complete the audit report and submit to the Puerto Rico Film Commission and Treasury Department, which may be extended for 30 additional days for reasonable cause.

9

REVIEW & APPROVAL

The adjudicating bodies (Puerto Rico Film Commission and Puerto Rico Treasury Department) will have a period of 30 days to review and approve the Audit Report. Once approved, the Treasury Department will certify that the tax credits and benefits set forth in your grant are available for use and/or transfer.

10

CLAIMING YOUR CREDITS

Within 1 day of receiving certification from the Treasury Department, the Puerto Rico Film Commission will notify that the tax credits and benefits set forth in your grant are available for use and/or transfer. In order for the applicable tax credits and benefits to become available, you will have 15 working days to pay the balance of the filing fee. All tax credits are transferable and can be used to offset income tax liability in Puerto Rico or brokered in the open market.