The Illinois Film Production Tax Credit Incentive Program currently allows for qualified productions to receive a 30% credit on qualified expenditures.
During the 2022 Spring Session of the Illinois General Assembly, IPA partnered with business, industry and labor in support of legislation to modestly expand the Film Incentive program, or as we refer to it, Illinois Production+. The legislation was passed by both the House and Senate and was signed into law by Governor Pritzker.
“In the past decade, Illinois' film and television industry has grown to be a nationwide competitor, and that is largely thanks to the Illinois Film Production Services Tax Credit. This highly-effective incentive has brought millions in direct spending, as well as numerous job opportunities, to our communities. Thanks to the good work of the Chicagoland Chamber of Commerce and the Illinois Production Alliance, the new expanded tax credit will meet the needs of a competitive market, and help Illinois remain a high-profile hub of film and television.” - State Representative, Margaret Croke (12th District)
Highlights of the expanded program include:
A modest expansion to allow for a *limited number of non-resident wages to qualify for the credit
*Qualifying Non-resident wages are limited to, Director, Writer, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer
In qualified productions of $25,000,000 or less, no more than 2 non-resident actors qualify
In qualified productions of more than $25,000,000, no more than 4 non-resident actors qualify
$500,000 cap on each qualified resident and non-resident wages
Creates the Illinois Production Workforce Development Fund which is funded entirely by the qualified productions, to allow the Department of Commerce and Economic Development make grants to qualified organizations that provide film production workforce training programs. 50% of the grant funds must be allocated to minority owned organizations, or educational/training programs whose participants represent a minimum of 50% minorities.
In terms of the long game, experts predict this legislation will put Film in Illinois on the trajectory to become a billion-dollar business, creating opportunities for diverse good paying jobs. Our efforts over the past two years have elevated awareness and identified film production as an important and fast-growing sector of the state’s economy. And amplified the industry’s commitment to the development and training of an equitable and skilled workforce which provides access and opportunity to minority and underserved communities.
The IPA continues to be engaged in lobbying, advocacy, and outreach with the media, legislators, and government officials.
Crain’s Chicago Business: Can TV and film be a billion-dollar business in Illinois? A group pushing Springfield to boost payroll credits for crews and actors thinks so. IPA board member, Qadree Holmes, and Executive Director, Christine Dudley, help explain.
Chicagoland Chamber of Commerce President Jack Lavin joined WLS radio’s John Howell to discuss the economic impact of the Film Industry and how the proposed expansion legislation will significantly contribute to the state’s economic recovery and provide training for a diverse workforce.
Minimum Qualifying Spend: $50,000 for projects less than 30 minutes; $100,00 for projects equal to or more than 30 minutes
No per project cap and no program cap
30% credit on qualified Illinois Production Spending
30% credit on Illinois resident wages up to $500,000 per worker
30% credit on *qualified non-resident wages up to $500,000 per worker
*Qualifying Non-resident wages are limited to, Director, Writer, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer, **Actor
In qualified productions of $25,000,000 or less, no more than** 2 non-resident actors qualify
In qualified productions of more than $25,000,000, no more than **4 non-resident actors qualify
Illinois Tax Credits are transferable for up to 1 year from issuance by the IFO/Department of Commerce & Economic Opportunity
Tax credits can be carried forward 5 years from when originally issued
The Illinois Film Production Tax Credit has been renewed through 2026
Please Note, applications for the FTC must be submitted prior to principal photography:
Applications must be submitted 5 days prior to principal photography for Commercials
Applications must be submitted 24 hours prior to principal photography
For More information, check out the Illinois Film Office’s website.
source: Illinois Film Office