Governor Pierluisi announced an additional $74M in federal funds will be available for Puerto Rico film tax credits. The $74M allocation, which proceed from the American Rescue Plan Act (“ARPA”) funds allocated to Puerto Rico, will be available beginning fiscal year 2023. Of the total allocation, $37M will be available for 2023 and $37M will be available for 2024.
The ARPA allocation nearly doubles the funds available for PR film tax credits, which is capped at $38M per fiscal year under Puerto Rico’s Act 60 of 2019 (“Act 60”). In addition to the ARPA allocation, there is currently a bill in the PR legislature which proposes to increase the annual cap for film tax credits from the current $38M to $100M. Bill No. PS 552 was approved by the Puerto Rico Senate on June 25, 2022. If approved by the House of Representatives and signed by the Governor, the new cap would begin immediately, and the funds available for fiscal years 2023 and 2024 would go up to $137M, and to $100M thereafter.