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Illinois Film Production Tax Credit

About

In 2025 the Illinois General Assembly expanded the Illinois Film Production Tax Credit Act, offering producers a credit of 35% of all qualified Illinois spending, including post-production and Illinois resident salaries up to $500,000 per worker; and 30% on limited non-resident salaries up to $500,00 per worker.  The Illinois Film Tax Credit is currently scheduled for legislative renewal in 2039. 

For questions about the Illinois Film Production Tax Credit please contact filmtaxcredit@illinois.gov.

SB 1911 will create new incentives for projects filmed in Illinois, including:
 
Tax Credit Benefits
  • 35% credit for the use of tangible personal property or the expenses to acquire services from vendors in Illinois
  • 35% credit on Illinois resident salaries up to $500,000 per worker.
  • 30% credit on non-resident salaries up to $500,000 per worker for up to thirteen (13) non-resident employees other than non-resident actors for work performed in Illinois; and salaries for 4 non-resident actors included for projects budgeted at under $20MM Illinois spend, 5 non-resident actors included for projects budgeted between $20MM - $40MM Illinois spend, 6 actors included for projects budgeted at over $40MM Illinois spend. For purposes of calculating Illinois labor expenditures for a television series, the eligible non-resident wage limitations are applied per episode to the entire season.  Subject to other limitations, only wages and employer paid benefits to no more than 2 executive producers per accredited production may be considered Illinois labor expenditures. Line producers are not subject to the 2-producer limit. 
  • 15% additional credit on salaries of individuals (making 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.
  • 5% additional credit on Illinois resident salaries for productions filming outside of Cook, DuPage, Kane, Lake, McHenry, and Will Counties.
  • 5% additional credit on a television series relocating to Illinois.
  • 5% additional credit for productions that meet sustainability certification requirements set by IFO/DCEO as a ’certified green production’.
  • Tax credit can be carried forward 5 years from when originally issued by Illinois Film Office/Department of Commerce and Economic Opportunity. 
  • The Illinois Film Tax Credit is currently scheduled for legislative renewal in 2039.

Application Checklist for Tax Credit Claim

Illinois Income Tax Withholding Requirements

For purposes of the Illinois Film Production Services Tax Credit, Illinois income tax withholding of 4.95% is required for compensation attributable to compensation paid on or after December 12, 2025.  This includes, but not limited to, individuals named in the end credits of a production and by individuals performing services as crew, as commonly and ubiquitously defined in the industry. This requirement applies regardless of whether such individuals are paid via a payroll service, directly (1099), or through an LLC, S corporation, or corporation. Entity form and method of payment are not determinative. Payments for locations, property use, equipment rentals, and vendor services not attributable to the personal services are not subject to withholding. 

For additional information regarding withholding requirements, including registration and applicable forms, please visit the Illinois Department of Revenue’s website at:

FY 2026-16, Changes to Withholding Income Tax for Film Production and Loan-Out Companies