In a significant win for the state’s film and television community, the Illinois General Assembly passed a sweeping expansion of the Illinois Film Production Services Tax Incentive program, reinforcing Illinois’ growing reputation as one of the country’s most production-friendly states. The bill, SB 1911, now heads to Governor J.B. Pritzker’s desk for his expected signature.
According to a statement released by Christine Dudley, Executive Director, of the Illinois Production Alliance (IPA), the legislation marks a crucial step in strengthening Illinois’ ability to attract more film, television, and commercial projects, supporting thousands of local jobs and small businesses statewide.
“We congratulate everyone who worked so hard to get this done and thank the legislators who recognize how valuable production is to our state’s economy and creative identity,” Dudley said in the statement.
Key Enhancements Under SB 1911
- Increased Tax Credit for Local Labor: Productions will see an increase in their tax credit for labor when they hire Illinois residents, going to 35% (up from 30%).
- Increased Tax Credit for Illinois Vendors: Productions will see an increase in their tax credit when engaging Illinois vendors, going to 35% (up from 30%).
- Expanded Non-Resident Inclusion: Now, up to 13 non-residents other than actors can be included in the film credit calculation, with a 30% tax credit for those salaries on the first $500,000 each. This is up from 9 positions in prior legislation.
- Actor Credit Adjustments: Productions hiring non-resident actors continue to receive a 30% tax credit on those salaries up to the first $500,000 per, with the number of eligible actors depending on the project’s budget:
- 4 actors included for projects budgeted at under $20MM
- 5 actors included for projects budgeted between $20MM – $40MM
- 6 actors included for projects budgeted at over $40MM
Note: for the purposes of calculating non-resident compensation for a series, the limit is applied on a per-episode basis.
- Regional Production Bonus: For productions filming outside of Cook, DuPage, Kane, Lake, McHenry, and Will Counties, an additional 5% credit is offered on labor expenditures for hiring Illinois residents.
- Relocating Series Incentive: A television series relocating to Illinois will receive an additional 5% credit on its Illinois production spending.
- Green Sustainability Incentive: Productions with a certified “green” sustainability plan will receive an additional 5% credit on their Illinois production spending.
- Airline Credit Addition: Airline tickets now qualify as a production expense in tax credit calculations, when purchased from an airline with their corporate headquarters domiciled in Illinois.
The Illinois Production Alliance credited the passage to a strong collaboration between state leaders, labor unions, and industry partners, as well as the IPA’s own two-year advocacy campaign led by its board, government affairs team, and the Motion Picture Association (MPA).
Special thanks were extended to Governor J.B. Pritzker, Senate President Don Harmon, House Speaker Chris Welch, and legislators Elgie Sims, Mattie Hunter, Cristina Castro, Curtis Tarver, Margaret Croke, and Kimberley DuBuclet for their leadership and support.
“This legislation allows Illinois film, television, and commercial production to move to the next level,” Dudley added, calling the moment “a tremendous victory for the state’s creative economy and its people.”
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