P.R. Laws tit. 23, § 11002b
With regard solely to film projects, every grantee shall pay to the Secretary of Development, through the purchase of a voucher in an Internal Revenue Collection Center of the Department of the Treasury, a fee equal to one percent (1%) of the Puerto Rico production expenditures qualifying for a credit pursuant to § 11006b of this title, as certified by the auditor, up to two hundred and fifty thousand dollars ($250,000). The Secretary of the Treasury shall create a special fund, denominated “Special Fund under the Puerto Rico Film Industry Economic Incentives Act”, and shall deposit in it the funds generated from the fees paid. The Secretary of Development shall use said funds to pay for any expenditures incurred in promoting, administering, and implementing this chapter. The Secretary of Development may also employ such funds to foster the development of the local film industry and/or pay any administrative or operational expenditures of the Motion Picture Corporation. The Secretary of Development shall require grantees pay fifty percent (50%) of the estimate of such fees upon issuance of the grant, computed based on an estimate of the Puerto Rico production expenditures filed with the application for a grant, and the balance after the auditor finishes the determination of the Puerto Rico production expenditures and before he/she certifies the amount of Puerto Rico production expenditures and the computation of the tax credit pursuant to § 11006b of this title.
Furthermore, with regard solely to film projects, every grantee shall pay to the Secretary of Development, through the purchase of a voucher in an Internal Revenue Collection Center of the Department of the Treasury, a fee equal to one percent (1%) of the Puerto Rico production expenditures for payments made to any technical or creative staff behind the cameras, known as “below-the-line”, who is an “above-the-line” nonresident, and who qualifies for a credit pursuant to §11006b of this title, as certified by the auditor. The Secretary of the Treasury shall create a special fund, denominated “Special Fund under the Puerto Rico Film Industry Economic Incentives Act for the Betterment of the Local Film Industry”, and shall deposit therein the funds generated by fees paid in accordance with this paragraph. The Secretary of Development shall only use such funds for the creation of programs that promote the betterment of the rising local film industry, thus guaranteeing that the local workforce develops the required skills and abilities to work with the most complex and sophisticated infrastructures known in film industries around the world. To such ends, the Secretary of Development shall procure the best resources worldwide for such programs. The Secretary of Development shall require grantees to pay such fees after the auditor concludes his/her Puerto Rico production expenditures determination and before he/she certifies the amount of Puerto Rico production expenditures and calculates the tax credit pursuant to §11006b of this title.
History —Mar. 4, 2011, No. 27, § 3.3; Dec. 21, 2012, No. 304, § 2.