Puerto Rico Film Tax Credit: Act 27 40% Guide

What Is Puerto Rico's Film Tax Credit?

Puerto Rico offers one of the most generous film production incentives in the United States through Act 27 (formerly Act 60). The program provides a 40% transferable tax credit on eligible production expenses, plus an additional 20% credit on payments to non-resident talent and crew. Administered by the Department of Economic Development and Commerce (DDEC) and the Puerto Rico Film Commission.

How Much Can You Receive?

Act 27 provides two separate credit tiers:

40% tax credit: On eligible production expenditure incurred in Puerto Rico
20% tax credit: On payments to non-resident talent and crew working in Puerto Rico
Transferability: Credits are fully transferable to Puerto Rico taxpayers
Carry-forward: Unused credits may be carried forward

What Productions Are Eligible?

Feature films and television series
Streaming content
Commercials and music videos
Post-production and VFX work
Productions must be filmed primarily in Puerto Rico

How Do You Apply for Puerto Rico's Credit?

Productions apply to the Puerto Rico Film Commission for a tax decree under Act 27. The application includes a production budget, shooting schedule, and economic impact statement. Once the decree is granted, productions can begin claiming credits on eligible expenditure. Final credit certificates are issued after the production files an audited cost report.

Why Productions Choose Puerto Rico

US territory. No passport required for US citizens and permanent residents. US labor laws and currency apply, simplifying logistics for American productions.

Tropical locations. Caribbean beaches, colonial Old San Juan, rainforest (El Yunque), bioluminescent bays, and urban environments.

High combined rate. The 40% + 20% structure creates one of the highest effective incentive rates available under the US flag.

Growing infrastructure. Expanding studio facilities and an experienced bilingual crew base.