Illinois Approves Significant Increases to State Production Tax Credits
Illinois is solidifying its position as a major player in the film and television industry with the recent approval of significant enhancements to its production tax credit program. Governor JB Pritzker signed Senate Bill 1911 (SB 1911) into law, ushering in a new era of incentives designed to attract more productions to the Prairie State. This expansion, part of a broader economic development initiative, promises to boost the state’s economy, create jobs, and further cultivate a thriving creative ecosystem.
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Enhanced Tax Credits for Illinois Residents and Vendors
The cornerstone of the new legislation is the increase in tax credits offered to productions that prioritize hiring Illinois residents and utilizing local vendors. The tax credit for employing Illinois residents has been raised from 30% to an impressive 35%. Similarly, the tax credit for engaging Illinois-based vendors also sees a boost to 35% from the previous 30%. This substantial increase aims to incentivize productions to invest directly in the state’s workforce and infrastructure, ensuring that the economic benefits of filmmaking are felt throughout Illinois.
This change is a game-changer for local businesses and creative professionals. For example, a film spending $1 million on Illinois resident salaries will now receive a $350,000 tax credit, compared to the previous $300,000. This additional $50,000 can be reinvested in the production, further stimulating the local economy. Similarly, vendors providing services like catering, equipment rental, and post-production will also benefit from the increased credit, making Illinois a more attractive and cost-effective location for filming.
Expanded Opportunities for Non-Resident Talent
Recognizing the need for specialized skills and expertise, the legislation also provides greater flexibility for productions employing non-resident crew members. The number of non-resident crew positions eligible for a 30% tax credit on the first $500,000 of each qualifying salary has been increased from 9 to 13. This allows productions to bring in key personnel with unique skill sets while still benefiting from the state’s generous tax incentives.
The updated rules also address the treatment of non-resident actors. Productions can claim a 30% credit on the first $500,000 of each non-resident actor’s salary, with the allowable number of actors varying based on the project’s budget. For projects with budgets under $20 million, four non-resident actors are eligible. This number increases to five for projects between $20 million and $40 million, and six for projects exceeding $40 million. For television series, these limits apply on a per-episode basis, providing further incentives for long-term productions to base themselves in Illinois. For instance, a TV show with a per-episode budget of $25 million can claim the credit for up to five non-resident actors per episode.
Additional Stackable Tax Credits and Program Details
Beyond the core increases, SB 1911 introduces several stackable tax credits designed to further incentivize specific types of productions and practices. A 5% stackable tax credit is available for productions filmed outside of the greater Chicago area, encompassing Cook, DuPage, Kane, Lake, McHenry, and Will Counties. This aims to encourage filming in less populated regions of the state, spreading the economic benefits to a wider geographic area. Furthermore, television series relocating to Illinois are eligible for a stackable 5% credit for the first season of production spend within the state. This is a powerful tool for attracting established television shows seeking a new home.
Productions that implement the state’s certified “green” sustainability plan are also eligible for a 5% stackable tax credit, promoting environmentally responsible filmmaking practices. The minimum spend requirement to qualify for these incentives remains a reasonable $100,000 for projects with runtimes of 30 minutes or more, and $50,000 for projects with runtimes under 30 minutes. Importantly, the tax credit is fully transferable, providing flexibility for productions in managing their finances. The state also has no annual cap on the total amount of tax credits available, ensuring that all qualified productions can benefit from the program. Tax credits can be carried forward 5 years from when they are originally issued by the Illinois Film Office.
Looking Ahead: A Bright Future for Illinois Production
The enhancements to the Illinois Film Production Tax Credit program, effective retroactively for qualified applications submitted on or after July 1, 2025, and extending the program to 2039, represent a significant investment in the state’s creative economy. By increasing tax credits, expanding opportunities for non-resident talent, and offering stackable incentives for specific types of productions and sustainable practices, Illinois is positioning itself as a premier destination for film and television production. This move is expected to attract more projects, create jobs, and generate significant economic activity throughout the state, solidifying Illinois’s place on the map as a leading hub for the entertainment industry.
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