of the Act empowers the person who holds the position of Secretary of

the Department of Economic Development and Commerce of Puerto Rico ("DEDC Secretary"), to adopt the necessary regulations or circular letter, the documents, information, and requirements to be provided and followed by a person interested in availing itself the benefits of the Act in addition to the eligibility requirements established under Chapter 9 of the Act. Circular Letter No. 21-01 will be the base circular letter to implement the provisions of the Act regarding eligible Film Projects subject to Section 1020.09, Section 2023.01, Section 2091.01, Section 2093.01, Section 3050.01, Section 6011.03, Section 6011.04, Section 6011.07, and Section 6020.01 of the Act. The main objective of this Circular Letter is to establish proper evaluative standards linked to Department of Economic Development and Commerce's return of investment model in order to be selective of the most promising projects including unique considerations based on the nature of the film industry. Forthcoming regulation will include the provisions of this Circular Letter and a revised return of investment formula, as part of the requirements for film tax-credit applications, to account for the intrinsic particularities of the filmindustry and the economic impact associated to it. The Secretary hereby sets forth the applicable procedure to all Film Project applications and the validation of Puerto Rico Productions Expenses. 1 11. Film Tax Decree Application Process: a) The Exempt Business that complies with the requirements established in Section 2091.01(a)(1) and Section 3050.01 of the Act for the granting of a Decree of Film Tax Credits ("Decree"), shall submit an application to the DEDC Secretary through the Single Business Portal tool. b) The application must be submitted before the end of Principal Photography. in the case of independent post-production recordings or video games, the application must be submitted before the end of post-production or production, respectively. In the case of Film Festivals, the application must be submitted before the beginning of the Film Festival. c) At any time of the process, the DEDC Secretary or any representative of the DEDC Secretary, will review the application and may request any additional documents or information as part of the evaluation and approval process if deemed necessary. d) Pursuant to the applicable evaluation process established in Section 6020.01 of the Act, once a Film Project complies with the requirements of each eligible Film Project and most of the criteria of evaluation for all Film Projects, the DEDC Secretary shall issue a Decree tothe Film Project, if it is in the best social and economic interest of Puerto Rico. The Decreewill be issued by the DEDC Secretary per fiscal year. e) For the Decree to become effective, the Applicant is required to pay a mandatory filling fee equivalent of one percent (1%) of the Production Expenses of Puerto Rico, up to a maximum rate of two hundred and fifty thousand dollars ($250,000.00) as established in 6009