FAQs

1. Submit an Application
   • Commercials - must be received 24 hours prior to shooting
   • TV & Film - must be received 5 business days prior to shooting
2. If the application is approved, an Accredited Production Certificate will be issued to the applicant.
3. The credit may be claimed upon completion of production in Illinois but no later than two years following the completion of production in Illinois.
   Applicant Checklist for Tax Credit Claim
4. The tax credit will be issued upon IFO’s verification of all costs submitted by an independent CPA (approved by IFO prior to work on the engagement commences), and verification that the applicant has met or made good-faith efforts in achieving the goals of their diversity plan.

**Please note, receiving an Accredited Production Certificate does not directly guarantee a tax credit certificate. An Accredited Production Certificate only means the application is eligible to claim a tax credit certificate. **

Here is a list of all the documents that comprise a complete application:

1. Seven page application
2. Proof of Copyright or Contract. Please note, a notarized affidavit is permissible in lieu of Proof of Copyright (see page 7 of the application). Only contracts signed and dated by all parties will be accepted.
3. IRS EIN Assignment Letter (first-time applicants only)
4. Confidentiality Letter (if applicable)
5. Storyboards (commercials only)

Only wages and employer paid benefits to Illinois residents and non-resident labor up to $500,000 per worker for up to nine (9) non-resident employees 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.

An Illinois resident is a person who is "domiciled" in Illinois during the accredited production. Residency is verified by a driver's license or state identification issued prior to commencement of the accredited production.

Proof of residency shall be provided by submission of:

1. A legible copy of the Illinois drivers' license or state identification. OR
2. A properly completed I-9 that provides the Illinois resident's:
   • street address
   • drivers' license or state identification number
   • expiration date of the Illinois drivers' license or state identification

In the case where an individual operates through a corporation and is the sole shareholder and employee of the corporation, the individual may qualify if he meets the residency requirement.

Expenditures that are reasonable under the circumstances and directly attributed to the production, including:

• Wages paid to Illinois residents (limited to the first $500,000 per individual) non-resident labor up to $500,000 per worker for up to nine (9) non-resident employees 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.
• Expenses for the purchase of tangible personal property and services from vendors in Illinois (Qualified Expenditures)

Yes, expenses that are directly incurred for the production from the final script stage to the end of post-production are eligible.

The production is eligible for an additional 15% tax credit on Illinois labor expenditures for employees who live in an area of an area of high unemployment and earned a minimum of $1,000 on the production.

The IFO maintains a list of CPAs​ that have previously worked on Film Tax Credit engagements. You may request to use a CPA outside the list, if the CPA is independent of the applicant and licensed in Illinois. Contact the IFO before work on the engagement commences.

Tax Credit Buyers

The IFO provides this information for your reference. We do not endorse any of the services provided herein. Transferees are not limited to these entities. Recipients may transfer the credit to any taxpayer.

Within one year of issuance, the applicant may request that the tax credit be transferred to up to 10 transferees. The applicant shall submit, in writing, a request naming the transferee(s), including tax identification number, address, and amount to be transferred.

For tax credits issued prior to July 1, 2024, taxpayers requesting a tax credit transfer must pay a transfer fee equal to 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.  IFO will send an invoice identifying the amount due with payment instructions upon receipt of the Transfer Request Form.   The tax credit fee must be paid prior to the issuance of a transfer certificate. 

For tax credits issued on or after July 1, 2024, the tax credit fee applies to all credits both transferred and retained.  See question #14 below.

No, there is no cap in the amount of credit an applicant can earn, nor is there a cap for the program overall.

The Illinois Film Tax Credit is currently scheduled for legislative review in 2032.
 

There is no fee to apply.  Beginning July 1, 2024, taxpayers who have been awarded a tax credit under the Film Production Services Tax Credit Act of 2008 shall pay to the Department of Commerce and Economic Opportunity, after determination of the tax credit amount but prior to the issuance of a tax credit certificate pursuant to Section 35 of the Film Production Services Tax Credit Act of 2008, a fee equal to 2.5% of the credit amount awarded to the taxpayer under the Film Production Services Tax Credit Act of 2008 that is attributable to wages paid to nonresidents, as described in Section 10 of the Film Production Services Tax Credit Act of 2008, and an additional fee equal to 0.25% of the amount generated by subtracting the credit amount awarded to the taxpayer under the Film Production Services Tax Credit Act of 2008 that is attributable to wages paid to nonresidents from the total credit amount awarded to the taxpayer under that Act. All fees collected under this subsection shall be deposited into the Illinois Production Workforce Development Fund.

There is no recapture on the credit.

Once an application is submitted, the applicant has 30 days to submit all required paperwork.

Minimum spend is $50,000 for productions of less than 30 minutes and $100,000 for productions of 30 minutes or longer.

The deadline to submit a claim for the tax credit (submit financials) is two years from the date the last IL qualified expenditure was paid.

Productions receiving the Illinois Film Tax Credit are required to include the Illinois Film Office logo in the end credits.