2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1007 - Credits Against Tax (§§ 30201 — 30230) › Subchapter A - Nonrefundable Credits (§§ 30201 — 30210d) › § 30210d - Credit for the purchase or broadcast of a television program made in Puerto Rico

(a) In general.— Any television station that purchases or broadcasts programs made in Puerto Rico by independent producers in which more than ninety percent (90%) of the actors employed are Puerto Rico residents, may claim a credit against the tax imposed under §§ 30041 et seq. of this title, as provided in this section. Provided, That such credit may not be claimed in relation to a program that qualifies for the benefits provided under §§ 11001 et seq. of Title 23, known as the “Puerto Rico Film Industry Economic Incentives Act”, or any similar provision in a prior or successor law.
(b) Amount of credit.— The credit provided in this section shall be fifteen percent (15%) of the expenses paid by the television station during the taxable year in which the credit is claimed for the purchase or broadcast of new programs made in Puerto Rico. Provided, That expenses paid to an entity that is part of a controlled group or to related entities, as defined in §§ 30044 and 30045 of this title, shall not qualify for the credit provided in this section. For purposes of this subsection, related entities shall include partnerships and other excluded members engaged in an income-producing trade or business in Puerto Rico that, should the rules of group of related entities be applied, for purposes of this subsection, would be considered a component member of such group, by the person that claims the credit.
(c) Requirements.— Any television station that chooses to avail itself of the credit provided under this section, shall keep a complete and detailed accounting stating the income and expenditures of the regular operations and of the purchase or broadcast of programs made in Puerto Rico, in addition to any other requirements provided in the regulations adopted by the Secretary of the Treasury in conjunction with the Department of Economic Development.
(d) Certificate of compliance.— The Department of Economic Development shall be responsible for overseeing that every television station claiming a credit under this section meets all the requirements provided herein and in the pertinent regulations. The Department of Economic Development shall validate this information by issuing a certificate of compliance annually, which shall be processed through the Puerto Rico’s Economic Development Interagency Incentive Validation Portal, so that the Secretary of the Treasury may have access to the same while processing the tax benefits established in this subtitle. Said certificate of compliance shall also state that the program related to the credit provided in this section does not qualify for the benefits provided under §§ 11001 et seq. of Title 23, known as the “Puerto Rico Film Industry Economic Incentives Act”, or any similar provision in a prior or successor law. The certificate of compliance shall be included in the income tax return of the television station claiming the credit provided under this section.
(e) Credit limit.— The credit granted under this section may be used to reduce the tax imposed under §§ 30041 et seq. of this title on the eligible television station by up to fifteen percent (15%). Credits not used by the eligible television station shall not be carried over to subsequent taxable years.
(f) Definitions.— For purposes of this section, the following terms shall have the meaning provided below:
(1) Independent producer.— Shall mean a natural or juridical bona fide person that creates or owns the intellectual and creative idea or work that leads to the creation of the television program; is engaged in the development and creation of content and concepts for television stations according to their particular needs; and whose income from such activity does not exceed one million, five hundred thousand dollars ($1,500,000) annually.
(2) Program made in Puerto Rico.— Shall mean feature films, short films, documentaries, series, and miniseries produced in Puerto Rico. This term does not include music videos; advertisements; videogames; contests; live shows; soundtrack, or dubbing; productions containing pornography; productions mainly consisting of religious or political propaganda; radio programs; productions intended for fundraising, marketing, or advertising products, services, persons or businesses; or productions intended for employee training.
History —Jan. 31, 2011, No. 1, added as § 1051.14 on Sept. 30, 2015, No. 159, § 8.