---
title: "Puerto Rico film tax incentives in Wrapbook"
slug: "enable-puerto-rico-film-tax-incentive-settings-for-a-project-in-wrapbook"
updated: 2026-06-15T16:32:41Z
published: 2026-06-15T16:32:41Z
canonical: "help.wrapbook.com/enable-puerto-rico-film-tax-incentive-settings-for-a-project-in-wrapbook"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.wrapbook.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Puerto Rico film tax incentives in Wrapbook

## Overview

Wrapbook supports [Puerto Rico's film production tax incentive program](https://docs.pr.gov/files/DDEC/Cine/PRFC_WDF%20Brochure.pdf), which allows qualifying productions to receive up to a **40% tax credit on qualifying spend** in Puerto Rico. When you set up a project with a Puerto Rico work location, Wrapbook surfaces a dedicated question in your project's *Tax Credits* settings so you can configure withholding correctly from the start.

## What changes when you enable Puerto Rico tax credits

When you add a Puerto Rico [work location](/v1/docs/payroll-2-1) to a project, the following question appears in your *Project Settings*, under *Tax Credits.*

*Is this a Puerto Rico tax credit project?*

### If you select *Yes*

Non-Puerto Rico resident loan-outs working on the project will be withheld at a **reduced rate of 20%** instead of the standard 29%. This reduced rate reflects the incentive program's structure and applies automatically to qualifying payroll going forward. A banner confirms *All future loan-out payments will be subject to a reduced withholding tax rate.*

### If you select *No*

Loan-out withholding continues at the standard 29% rate. A banner confirms: *Moving forward, Puerto Rico taxes for loan outs will be calculated at the higher non-incentive rate. Payrolls that have already been processed will not be affected by this change.*

## How to enable Puerto Rico tax credit settings in Wrapbook

When a Puerto Rico [work location](/v1/docs/payroll-2-1) is added to a project, you'll be able to enable tax credits from the project's settings using these steps:

1. In the left-side navigation, click the dropdown menu and select the project
2. In the left-side navigation, click **Project settings**
3. Next to the question *Is this a Puerto Rico tax credit project?* click to choose **Yes** if your production qualifies for Puerto Rico film tax incentives
4. Click the **Save changes** button to apply the change

**Notes:**

- A Puerto Rico work location must be added to the Project settings **before** you can enable tax credit settings
- Changing this setting mid-production affects future payrolls only. Payrolls that have already been processed will not be retroactively adjusted.

## Who Is affected

This setting is relevant to productions that:

- Have at least one **Puerto Rico work location** on their project
- Work with **non-Puerto Rico resident loan outs**
- Qualify for Puerto Rico's film tax incentive program

Standard W-2 employee withholding is not affected by this setting.

A loan-out company is a corporate entity, typically an S Corporation or C Corporation, that "loans out" the services of an individual (usually an entertainment industry professional) to other companies. The individual is an employee of their loan-out company, which in turn contracts with production companies or other businesses.

Tax benefits offered by states (or foreign countries) to encourage films and television projects to shoot in their jurisdiction. These incentives can be in the form of a tax credit for that state, or a rebate paid directly to the production company once all requirements have been fulfilled.