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Incentives

Production Incentives Database

Incentive Type Transferable Non-Refundable Tax Credit
Spend 30%
Above the Line Residents 30-45%
Above the Line Nonresidents 30*
Below the Line Residents 30-45%
Below the Line Nonresidents 30*
Bonus 15% on salaries of individuals (making at least $1,000 in total wages) that live in an economically disadvantaged area (at least 13.8% unemployment).
Project Criteria $100,000 minimum local spend for production 30 minutes or longer. $50,000 minimum local spend for productions of less than 30 minutes
Loanout Registration Required No
Loanout Withholding No
Annual Funding Caps None
Project Caps 4000000
Minimum Spend $100,000
Sunset Date 12/31/2026
Audit Requirements
An audit by a CPA approved by the Illinois Film Office is required.
Getting Started
Submit the application 5 business days prior to the beginning of principal photography in Illinois (24 hours for commercials) including:
- Proof of Copyright or Contract
- Diversity plan outlining specific goals for hiring minorities and females
- Competitive need statement
Screen Credit Required
Yes
Company Registration
No
Sales Use Tax Relief
No
Hotel Occupancy Tax Relief
Yes
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
The tax credit will be issued upon the Illinois Film Office's verification of all costs submitted by the CPA and verification that the applicant has met or made good-faith efforts in achieving the goals of their diversity plan.

The credit may be claimed upon completion of production in Illinois but no later than two years following the completion of production in Illinois

Beginning July 1, 2023, if a credit is transferred by the taxpayer, then the transferor taxpayer shall pay to the Department of Commerce and Economic Opportunity, upon notification of a transfer, a fee equal to 2.5% of the transferred credit amount eligible for nonresident wages, and an additional fee of 0.25% of the total amount of the transferred credit that is not calculated on nonresident wages, which shall be deposited into the Illinois Production Workforce Development Fund.
Additional Information
Compensation Cap: $500,000 maximum compensation per resident employee.

*Non Resident Limitation - The following positions are allowable to earn the production credit as non residents- Writer, Director, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer, and Actor

*Non Resident Actor limitation- For an accredited Illinois production spending of $25 Million or less, no more than 2 nonresident actors' wages shall qualify as an Illinois labor expenditure. For an accredited production with Illinois production spending of more than $25 Million, no more than 4 nonresident actor's wages shall qualify as Illinois labor expenditures. (does not include Reality Stars)

**Project Caps- for State fiscal years ending on or before June 30, 2022 and ending on or after June 30, 2024. Due to the impact of the COVID-19 pandemic, for the State fiscal year ending on June 30, 2023, the amount of tax credits shall not exceed $4,000,000. For the State fiscal year ending on June 30, 2023, credits awarded in excess of $2,000,000 must be awarded to applicants with Illinois production spending of not less than $2,500,000.

In order to comply with the tax credit rules and regulations, production companies
must make good-faith efforts to hire Illinois residents that represent the diversity of the State. The Illinois Department of Commerce and Economic Opportunity request that production companies have their Illinois crew complete this form and return it to the production office.

Expenses that are directly incurred for the production from the final script stage to the end of post-production are eligible for the tax credit.

The tax credit can be claimed upon completion of the production but no later than 2 years following the completion of the production.

Diversity reporting is required.

Tax Credit has a 5 Year carry forward

For commercial you need story boards with application

Last updated: 07/01/2024

Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at [email protected].