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About
Tax Credit Benefits
Rules/Requirements
Application Requirements/Process
Tax Credit Certificate/Transfer
Diversity Documents
About
In December of 2008 the Illinois General Assembly passed the Illinois Film Production Tax Credit Act, which offers producers a credit of 30% of all qualified expenditures, including post-production, and has no sunset. The goal of the Tax Credit Act is to attract local vendors, union leaders and filmmakers to the Illinois film industry in order to promote growth and job opportunities. In addition, the tax credit aims to stimulate diversity in production hiring.
Please visit the link, Qualified Expenditures, to view a complete list of the production and post-production qualifications under the Tax Credit Act.
Film Tax Credit Bill
Qualified Expenditures
Tax Credit Benefits
- 30% of the qualified Illinois Production Spending.
- 30% credit on Illinois salaries up to $100,000 per worker.
- Tax credit can be carried forward 5 years from when originally issued by IFO.
- The yearly sunset provision has been removed so the IL Film Services Tax Credit does not expire.
- Applicants will receive an additional 15% tax credit on salaries of individuals that live in an economically disadvantaged area.
Rules/Requirements
- The tax credit must directly contribute to Illinois Production Spending.
- Illinois Production Spending includes tangible, personal property and services purchased from Illinois vendors and compensation paid to Illinois resident employees.
- Illinois vendors qualify as businesses that have Illinois addresses.
- An Illinois resident qualifies as someone who has a valid Illinois state ID or drivers license, issued prior to commencement of production.
- Compensation maximum is $100,000 for each Illinois resident employee.
- Applicants must submit a Diversity Plan.
- Must spend at least $50,000 in Illinois Production Spending for a project 29 minutes or under.
- Must spend at least $100,000 in Illinois Production Spending for a project 30 minutes or over.
- Receipts and financial materials must be processed by a certified public accountant.
Complete Set of IFO Tax Credit Rules and Requirements
Application Requirements/Process
- Applicants must fill out a Competitive Need application.
Competitive Need Application
- Commercial Applications must be submitted to IFO 24 hours prior to start of filming.
- Film/Television Applications must be submitted to IFO 5 business days before principal photography begins, along with the Diversity Plan application, Competitive Need application and Copy of Contract or Copyright.
- Applicant must provide receipts and other financial materials to a Certified Public Accountant once project is completed. The CPA will validate and calculate the applicant’s local production spending. The CPA will provide the IFO with the applicant's tax credit profile.
List of Illinois CPAs
Tax Credit Certificate/Transfer
- Upon receiving the applicant’s tax credit profile, and Diversity Plan efforts have been confirmed, the IFO will issue the Tax Credit Certificate to the applicant.
- The tax credit can only be transferred once.
- The applicant must request the transfer of tax in writing.
- The request must include:
- Original taxpayer’s name
- Date the original tax credit was issued
- The tax credit amount earned
- Amount of the tax credit to be transferred
- Federal employer ID
List of Tax Credit Buyers
Diversity Documents
The Diversity Plan must detail the manner in which the Applicant proposes to achieve its goals to ensure employment of minorities that represent the State of Illinois rather than merely to assure nondiscrimination. The Applicant must also document that it made “good faith efforts” in attempting to achieve a racially diverse crew.
The applicant must agree to track his/her progress in reaching the State’s diversity goals by using the “Diversity Plan Tracking Sheet” provided by the IFO.
Diversity Plan
Diversity Plan Tracking Sheet
Minority Definitions
Minority Crew and Vendor List
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