Our film industry is constantly evolving and the past few months have been no exception. For your convenience, here is a summary of what's On Our Radar:
The Tax Concession Committee has been eliminated. Local fiscal authority AAFAF Administrative Order OA-2018-10-01 has eliminated the Disbursement and Tax Concession Authorization Committee. The Resolutions that set limitations on the use of credits have also been repealed. This means that moving forward all tax credit application processes will be carried out by the respective agencies under the rules and regulations established by the previous incentives acts. Any pending waivers or requests shall be processed through the agencies as well. The film incentives process, as well as all of the pending waiver requests, will now again be handled by the Film Commission, as set forth in Act 27-2011, as amended.
Act 27 may be extended. The Legislature passed P de la C 1663, a bill which would extend the Film Act until December of 2018. The bill establishes a deadline to begin principal photography in under 30 days after issuance of the decree and introduces a deadline to submit audit reports, depending on when the decree was issued. Act 27 officially expired last June 30 and the Governor has not signed the bill yet, so we currently have no film incentives act in place until then.
New Incentives Code. The government has presented legislative bill P de la C 1635, the New Incentives Code which should regulate all incentives across qualifying industries. The Creative Industries and Film Production would be eligible to receive various incentives, including cash grants (replacing tax credits) for the 40/20% base originally established in Act 27. Although the bill has been presented, it is still not clear when this new model will be operational.
Revival of the Film Fund. The Film Commission has announced on various recent press conferences that the Film Fund will operate again and is currently evaluating the process and the terms under which it will provide equity of up to $125,000 per film project.
PR Film District Press Conference. At the inauguration of the Puerto Rico Film District Construction Site, top government officials, including Governor Roselló, DDEC Secretary Laboy and Film Commissioner Rúa, expressed their support to the film industry and their intention to promote Puerto Rico as a competitive world class film destination.
We trust all these new developments will help strengthen our industry as they reaffirm our government's support to helping us make Puerto Rico a top filming destination.
Did you know… ?
Governor Ricardo Rosselló Nevares announced that a dozen film projects will be filmed on the Island during the months of June, July and August, injecting nearly $65 million of direct spend into the local economy. Among these projects is The Oath 2, produced in Puerto Rico for Sony Pictures’ streaming platform, Crackle. (Source)
Mark Your Calendar
Join us next Friday, July 27th at 2:00pm at Cine Campus 2018, where Antonio J. Sifre and Maritere Ysern will be discussing the steps to follow during the development stage of your film project.
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