Illinois Production Tax Incentives

Overview

  • Illinois offers a 30% transferable tax credit on tangible personal property and services purchased from Illinois vendors and compensation paid to Illinois residents (up-to $500K/employee).
  • 9 non-resident employees may qualify (up-to $500K/employee) in certain positions (additional limitations on non-resident actors). An additional 15% can be earned on salaries paid to individuals (earning at least $1K in total wages)
  • Who live in economically disadvantaged areas whose unemployment rate is at least 150% of the state's annual average. There is a mandatory tax credit fee of 2.5% of credit amount eligible for non-resident wages and an additional.
  • 25% of total amount of the credit which is not calculated on non-resident wages. Tax credits may be transferred within 1 year of issuance and can be split between up-to 10 transferees.

Eligible project types: Animation, commercials, documentaries, feature films, pilots, reality TV, scripted TV

Incentive details

Type
Transferable tax credit
Rate
30% (base)
Uplift(s)
15% on salaries paid to individuals (earning at least $1K in total wages) who live in economically disadvantaged areas whose unemployment rate is at least 150% of the state's annual average.
Annual Cap
None
Project Cap
None
Compensation Cap
$500K
Eligible Expenses
Tangible personal property and services purchased from Illinois vendors and compensation paid to Illinois residents (up-to $500K/employee). 9 non-resident employees may qualify (up-to $500K/employee) in the following positions: director, writer, director of photography, production designer, costume designer, production accountant, VFX supervisor, editor, composer, actor. For projects spending less than $25M, no more than 2 non-resident actors qualify; for projects spending $25M+, no more than 4 non-resident actors qualify.
Additional Info
Tax credit fee of 2.5% of credit amount eligible for non-resident wages and an additional .25% of total amount of the credit which is not calculated on non-resident wages; the fee is assessed on all tax credits. Tax credits may be transferred within 1 year of issuance and can be split between up-to 10 transferees.

Requirements

Minimum Spend
$50K (projects less than 30 min) / $100K (projects more than 30 min)
Local Hire Requirement
None
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
None
Application Timing
Applications must be received no later than 5 business days prior to the start of principal photography
Audit
CPA audit required. The deadline to submit financial documents to claim the tax credit is 2 years from the date of the last IL qualified expense was paid.

How to Apply

Application
Application Timing
Illinois Film Office

PETER HAWLEY, FILM COMMISSIONER, 312-814-3600, FILM@ILLINOIS.GOV
Welcome to The Illinois Film Office - Film

Helpful Links

taxcreditfactsheet.pdf
FAQs - Film Tax Credit
ILLINOIS FILM TAX CREDIT DIVERSITY PLAN TRACKING SHEET

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