Illinois Approves Significant Increases to State Production Tax Credits

Illinois Governor JB Pritzker has signed SB 1911, which expands and enhances the Prairie State’s film production tax credit. The bill is part of a larger economic development package and aims to make the Land of Lincoln a more film-friendly state with increased tax credits for production expenses on Illinois residents and vendors as well as more flexibility for non-residents working in the state.

The new incentive offers a 35% tax credit for hiring Illinois residents, increased from 30%, and a 35% tax credit for engaging Illinois vendors, also increased from 30%.

Moreover, productions in Illinois may now include up to 13 non-resident crew positions (up from 9), receiving a 30% credit on the first $500,000 of each qualifying salary. Non-resident actors, meanwhile, remain eligible for a 30% credit on the first $500,000, with updated allowable counts based on respective project budgets.

Four actors are eligible on projects under $20 million, five actors for projects $20 million–$40 million, and six actors for projects over $40 million. For series, these limits apply on a per-episode basis.

A 5% stackable tax credit is also available for productions filmed outside of the greater Chicago area of Cook, DuPage, Kane, Lake, McHenry and Will Counties.

Television series relocating in Illinois will also be eligible for a stackable 5% credit for the first season of Illinois production spend, as will any production implementing the state’s certified “green” sustainability plan.

The state’s minimum spend requirement to be eligible for these incentives remains a conservative $100,000 for projects with runtimes of 30 minutes or more, and $50,00 for projects with runtimes under 30 minutes. The credit is fully transferable and the state has no annual cap.

Governor Pritzker states, “The Film Production Tax Credit continues to fuel an industry that is central to Illinois’ cultural and economic vitality. With this expansion, we are doubling down on our commitment to building a world-class creative workforce and ensuring that productions from around the globe choose Illinois as their home.”

The Illinois Production Alliance announced the update on Dec. 17. All provisions in the Bill take effect immediately, with benefits applying retroactively to qualified applications submitted on or after July 1, 2025. Tax credits can be carried forward 5 years from when they are originally issued by the Illinois Film Office. The Bill also extends the program to 2039.