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On Our Radar


Dear Clients, Colleagues, and Friends:

Despite recent uncertainty about the future of the film incentives program due to Puerto Rico’s fiscal situation, new developments reaffirm the support of the Puerto Rico government to our film industry. Here is what has been On Our Radar:

Act 27-2011 Extended. On December 7, 2018, Governor Ricardo Rosselló signed P. de la C. 1772 (Act 256-2018) to extend the Puerto Rico Film Industry Economic Incentives Act retroactive to its original termination date of June 30, 2018. This means that the Film Commission and the Treasury Department may now continue to receive and process applications as before. See a summary of the Film Incentives Act in our website.

New Film Commissioner. Last December, Pedro Rúa-Jovet resigned as Puerto Rico Film Commissioner. Secretary of Economic Development Manuel Laboy has appointed one of his aides, attorney Pedro Piquer, as Interim Film Commissioner. Mr. Piquer has expressed his commitment to the film industry and, along with Carla Cardona, Tax Incentives Manager, will continue to handle tax incentives applications, decrees, and tax credit confirmations.

Tax Credit Cap Exhausted: The $50 million annual tax credit cap for Fiscal Year 2018-19 has been reached. In addition to the increase in current film production and prospective projects, there is a backlog of applications pending approval or reconsideration, because of the additional level of bureaucracy created by the now defunct Tax Disbursement Committee. The Committee was disbanded in July. The Film Commission is currently working out with the Treasury Department the normalization of the application and tax credit reserve processes.

Increase to the Tax Credit Cap to $100 Million. Secretary of Economic Development Manuel Laboy supports an increase to the tax credit cap from $50 million to $100 million, as allowed by Act 27-2011. See this news article published by Primera Hora. Christian Sobrino, Executive Director of local fiscal authority AFAAF, has confirmed that Puerto Rico is no longer under a liquidity crisis and that the government may increase the tax credit cap. We expect newly appointed Secretary of the Treasury, Raúl Maldonado, to increase the cap.

Tax Credits without Use Limitations; Strong Market. Treasury is issuing tax credits without any use limitations, after the Tax Disbursement Committee was disbanded in July. Film tax credits may be used for any income tax returns not yet due, including under valid extensions. Tax credit sales continue to be strong and, consistent with previous years, tax credits are selling for an average price of 90%.

The Sifre Group’s Hall of Fame

It is with great pride that we announce that our clients and friends, Heri Martínez de Dios of Gladius and Marcos Zurinaga of Zumare Entertainment recently won Emmys Awards in the Suncoast Region in the categories "Graphic Arts-Graphic" and "Documentary-Topical", respectively. Congratulations to you and your teams! We are very proud of all of our clients’ accomplishments and are grateful for your trust in letting us be a part of your journey.

Mark your calendars

Enfoque Talks: Mr. Pedro Piquer Henn, Film Commissioner

When: February 23, 2019

Where: Fine Arts- Hato Rey

*For more information, visit their Facebook page.

Festival de Cine Europeo de Puerto Rico

The Sifre Group is a proud sponsor of the 2019 Festival de Cine Europeo.

When: April 3, 2019- April 11, 2019

Where: The opening ceremony will take place at the Museo de Arte de Puerto Rico and the films will be exhibited at Fine Arts.

*For more information, visit their website.

Rincón Film Festival

When: April 12, 2019- April 14, 2019

Where: Various locations in Rincon, Puerto Rico

*For more information, visit their website.

Don’t forget to visit our website: www.sifregroup.com and Like us on Facebook for recent industry news. Please write, text or call us if you have any questions: ajsifre@sifregroup.com; (787)413-5262.

Saludos,

Antonio, Maritere, and Claudia

THE SIFRE GROUP

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