The Illinois General Assembly May 4 overwhelmingly approved Gov. Rod Blagojevich’s proposed 20% tax credit on total state production spending, putting Illinois up there among the best visual media incentives in the world.
The Illinois Production Alliance (IPA) visual media coalition worked with the governor and legislators to develop and gain support for this landmark legislation.
“This is incredibly positive news,” said John Digles, IPA board member and independent film producer. “Given the dynamics of the state budget concerns, this bill is a huge, huge accomplishment for our community.”
Retroactive to May 1, 2006 and extended to Dec. 1, 2007, the new legislation nearly doubles the state’s previous incentive, a wage-based credit.
Illinois production spending is defined in the bill as all salary and expense costs associated with production activities taking place within the state.
To qualify, minimum Illinois film and TV production spending has to be greater than $100,000; minimum commercial production spending must be greater than $50,000. The salary cap on wages eligible for the credit will be raised to $100,000 per employee per production.
Not covered are expenses tied to activities taking place outside Illinois, or related to travel into or out of the state, such as airline tickets.
The new incentive continues to encourage hiring within economically disadvantaged areas by providing an additional 15% wage credit on wages of individuals who live in such areas.
Although disappointed the legislature did not give the bill a longer life to 2009, the IPA has taken the single-year extension in stride.
“The shorter term means we will have to show the legislature next year, that the incentives have been working, that they helped generate more projects in the state,” said Digles.
The IPA also was undaunted by the exclusion of a proposed investment tax credit. “We’ve got so much going for us with the 20% credits,” Digles noted. “Our bill is among the top in the world, and now we’ll work for ways to add layers and enrich it in future legislative sessions.”
The so-called “Raleigh Bump” was another abandoned clause. It would have given an additional 15% when 50% of the stage work takes place in a facility with stages 15,000-sq. ft. or greater, located in a geographic area of high unemployment. L.A. Raleigh Studios proposes building a large stage complex on a former West Side illegal dump site.
IPA feels it has a lot of work ahead to make up for the decline in movie, TV show and commercial production. Only two movies are currently filming.
“We’re taking a moment to celebrate and then we’re going back to work to reach Hollywood and Madison Avenue decision-makers,” said IPA president Eileen Willenborg, who heads the Chicago AFTRA/SAG chapter.
Successfully lobbying on behalf of IPA were Elgie Sims Jr. and Brian Hynes from the firm of IGCG, Chicago.
Willenborg can be reached at 312/573-8081. Send your comments about the bill to BACKTALK via the button below.
