Illinois Film Office Claimed

The tax credit consists of:
30% of qualified Illinois vendor production spending
30% of Illinois labor expenditures up to $500,000 per worker
30% of non-resident labor up to $500,000 per worker up to nine (9) individuals in the following positions: Director, Writer, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer, Actor for work performed in Illinois. For qualified productions spending $25,000,000 or less, no more than 2 non-resident actors qualify. For qualified productions spending $25,000,000+, no more than 4 non-resident actors qualify. For a television series, qualifying non-resident wages are limited to the entire season.

Additional 15% Credit
Applicants will receive an additional 15% tax credit on salaries paid to individuals (earning at least $1,000 in total wages) who live in economically disadvantaged areas whose unemployment rate is at least 150% of the State’s annual average

Tax credit eligibility
$50,000 in Illinois production spend for a project less than 30 minutes,
$100,000 in Illinois production spend for a project 30 minutes or more qualifies

Production companies must promote diversity by making “good-faith” efforts to hire ethnic minority persons and women. They must also submit a diversity plan setting forth proactive steps they will take in achieving a crew that represents the diversity of the State.

Illinois production spending means tangible personal property and services purchased from Illinois vendors and compensation paid to Illinois resident employees (up to a maximum of $500,000 per employee).

• An Illinois Vendor is a purveyor of goods and services used in the production who is domiciled in Illinois and in good standing with the Illinois Secretary of State.
• An Illinois resident is someone who has a valid state ID or driver’s license that was issued prior to the commencement of work on the production.

Application Process
• Application – Commercial production applications filed with the Illinois Film Office 24 hours before filming begins in Illinois

• Application – Film/Television/Streaming production applications filed with the Illinois Film Office 5 business days before principal photography begins, including:
o Competitive Need - the applicant must demonstrate that if not for the credit, the applicant’s production would not occur in Illinois.
o Diversity Plan – Specific goals for hiring minorities and women
o Copy of Contract, proof of Copyright, or an Affidavit from copyright owner or authorized representative of the copyright owner.

• Approval of Application - If the application is approved, an Accredited Production Certificate will be issued to the applicant

• Claiming the Credit – After completing production in Illinois, companies must work with an independent and licensed Certified Public Accountant (“CPA”) to validate and calculate local production spend. The CPA will certify the qualifying Illinois expenses for the tax credit claim and will send all documentation to the Illinois Film Office.

• Certification – Upon receipt of the claimed credits from the licensed CPA, the Film Office will review the qualified expenses and diversity efforts; and upon approval, will issue a Tax Credit Certificate.

• Transfer – A tax credit may be transferred within one year of issuance; it may be divided between up to 10 transferees but cannot be re transferred. Requests to transfer credits can be submitted via a Transfer Request Form. The request must include:
o Original taxpayer’s name
o Date the original tax credit certificate was issued
o The tax credit amount earned
o Amount of the tax credit to be transferred
o Federal Taxpayer ID # of transferee (attach W-9 from the buyer)
- Tax credit transfer fee: 2.5% of transferred credit amount eligible for non-resident wages, and an
additional .25% of the total amount of the transferred credit which is not calculated on non-
resident wages.
- Transfer fee funds will go toward the replenishment of the Illinois Production Workforce Development
Fund for the purpose of providing grants to qualified training programs with an emphasis on
developing employment pathways for minorities and women.
- Transfer fee must be paid before IFO issues transfer certificate.

• Productions That Do Not Qualify for Credits News, current events or public programming, or a programs that includes weather or market reports
• Talk shows, games, questionnaires, or contests
• Sporting events or activities
• Award shows, galas, or telethons
• Productions produced primarily for industrial, corporate, or institutional purposes

Carry Forward
Unused tax credits may be carried forward 5 taxable years from the year of issuance.