Film Industry Development Program

The film and audiovisual industry is an integral part of the economic development of Puerto Rico. Year after year, it has shown continuous growth, generating significant contributions to the economy. Thousands of Puerto Rican workers earn their livelihood, directly or indirectly, given the multiplier effects the industry produces and its ability to create new sources of work, in the short, medium and long term.

Puerto Rico is part of the world film industry, one of export and of high international growth. Production studios come to our island to invest millions of dollars, which generates thousands of jobs, hotel stays, indirect economic activity, and promotion for Puerto Rico as a tourist destination. Local filmmakers finance, produce and showcase their projects, thereby strengthening our technical and creative class, developing new professionals and companies that export content and our culture worldwide.

During fiscal year 2017-18, the film industry contributed to the Puerto Rican economy over

$225 million in direct expenses, which represents more than $400 million in economic activity annually, generated some 17,000 temporary jobs, and some 22,000 hotel rooms.

The film industry is also a major force for small businesses and for other established industries such as hospitality, real estate, food, transportation, and equipment rental. In a recent two-year period, the film industry paid $ 49.6 million to local suppliers. The multiplier effect of these payments represented an additional investment in the economy of $85.8 million.

The Program’s mission is to promote and support the development of domestic and foreign cinema in Puerto Rico, to turn the island into a jurisdiction recognized by the industry at a worldwide level. For the past 3 years, we have experienced a significant increase in activity related to this industry, which demonstrates, thanks to the talent, geographic position, natural and cultural beauties, and incentives that Puerto Rico offers, that we have the potential to compete with other places. We have to take advantage of the synergy that exists between the cinema, the creative industries, tourism and the export of services.

Strategic Goals

• Inspection and regulation of incentives granted by the Program, to improve the operation and achieve a higher return on investment for the Government.
• Support the development and creation of production and / or post-production studios in Puerto Rico, for the development of local and international projects.
• Support the creation of constant and lasting jobs for the industry, sponsoring festivals and educational events.
• Achieve the endorsement of around 10 to 20 new film projects, with tax credits.
• Support 8 to 10 new local film projects through cash grants.

Strategic Objectives

• Organize Program employees to recognize and carry out their responsibilities.
• Create flowchart of procedure for the "Single Business Portal".
• Announce the changes to foreign producers so that the image of Puerto Rico is more positive and attractive to investors.
• Continue the dissemination of information on investment and / or expansion opportunities.
• Support the implementation of the Incentive Code.
• Prepare and approve a new Regulation (to be incorporated in the Incentive Code Regulations).
• Have meetings with large producers in the industry. For example, going to California in search of “multi-year production deals”.
• Work with audited cases for expenses greater than the reserve, endorsed cases requesting an increase in reserve and cases requesting endorsements.
• Collaborate with Invest Puerto Rico, Discover Puerto Rico and the Rums of Puerto Rico Program.

Statistical information

• The Program granted approximately $100 million in tax credits for a total of 39 projects during Fiscal Year 2018-2019.
• In contrast, between direct and indirect expenses, it is estimated that the endorsed film projects invested approximately $ 200 million in the local economy.
• The 39 projects created approximately 8,710 jobs for residents, paid a payroll of approximately $ 71,000,000, used approximately 11,553 hotel nights and together filmed 6,158 days in Puerto Rico.