P.R. Laws tit. 23, § 574
(a) A film entity may carry out an infrastructure project with the purpose of availing itself of the provisions of this chapter if it meets the requirements thereof and if said project entails the initial construction or substantial expansion in Puerto Rico of studios, laboratories, facilities for the international transmission of television images, or other permanent facilities to carry out film projects (regardless of whether said projects avail themselves of the provisions of this chapter) whose budget exceeds five million dollars ($5,000,000).
(b) The acquisition of machinery and equipment to be used or installed in an infrastructure project shall be considered as part of the budget, provided the machinery and equipment remain in Puerto Rico during its useful life or not less than five years, which ever is less, counting from the date of acquisition. Said assets shall only be removed from Puerto Rico in a temporary manner incidental to the film project. The Secretary of the Treasury or the Commissioner may require a bond or bank letter of credit from the film entity that acquires the machinery and equipment which secures the total of the tax credits generated by the purchase thereof. The bond shall have the Secretary of the Treasury as the beneficiary and shall be reduced annually in a proportional manner.
(c) In order for a substantial expansion to qualify as an infrastructure project, the film entity must carry out an expansion of the existing studios, laboratories or facilities whose investment is equal to at least twenty-five percent (25%) of the fair market value of its assets prior to said substantial expansion.
History —Dec. 24, 1999, No. 362, § 13.