Illinois Film Production Services Tax Credit: Overview and SB 1911 Updates

Illinois’ Film Production Services Tax Credit is a key economic development incentive that attracts film, television, and commercial production while supporting job creation and in state spending. Administered by the Illinois Department of Commerce and Economic Opportunity (DCEO) through the Illinois Film Office, the program provides a transferable income tax credit for qualified Illinois production expenditures, including resident wages, Illinois vendor spending, equipment rentals, and post‑production services, and applies to feature films, scripted and unscripted television, commercials, streaming projects, and select talk and game shows. In December 2025, the program was significantly expanded through Senate Bill 1911 (SB 1911), which modernized the credit, increased incentive rates, extended the program’s lifespan, and enhanced Illinois’ competitiveness for accredited productions commencing on or after July 1, 2025.

Key Enhancements Under Senate Bill 1911

Increased Base Credit

35% credit on Illinois resident wages
35% credit on spending with Illinois‑based vendors and service providers

Expanded Non‑Resident Labor Eligibility

30% credit on non‑resident wages, capped at $500,000 per worker
Coverage increased to 13 non‑resident crew positions
Non‑resident actor eligibility continues based on production budget thresholds

Stackable Bonus Credits (Up to 55%)

Productions may qualify for additional bonuses that can be stacked on top of the base credit:

15% for hiring Illinois residents from economically disadvantaged areas
5% for filming outside the six‑county Chicago metropolitan area
5% for television series relocating to Illinois
5% for certified green/sustainable productions

Program Extension and Stability

Program extended through December 31, 2038
No new credits awarded for tax years beginning on or after January 1, 2039

Compliance and Administrative Updates

Illinois labor limited to wages paid to no more than two executive producers, with defined exceptions
4.95% Illinois withholding required for compensation paid through loan‑out companies
Airline tickets qualify when purchased from airlines headquartered in Illinois

Application Process

Apply for accreditation through the Illinois Film Office at DCEO before production begins.
Meet timing requirements: at least 5 business days before filming for film/TV projects, or 24 hours prior for commercials.
Submit basic production details, including estimated Illinois spending, hiring projections, and required certifications.
Receive approval to begin accruing qualified Illinois expenditures.
Maintain records of eligible costs during production.
File a final credit claim after Illinois production wraps, supported by CPA‑reviewed cost documentation, within two years of completion.

Agreed Upon Procedures

As part of the final tax credit claim, productions must submit an Agreed‑Upon Procedures (AUP) report prepared by an independent certified public accountant. The AUP process involves:

Verification of qualified Illinois production expenditures
Confirmation of proper labor classifications
Validation of Illinois residency status for eligible workers
Review of vendor payments for compliance with Illinois Film Office rules and statutory requirements

Withum brings extensive experience advising film and television productions on incentive programs across the country, with a strong focus on credit compliance, structuring, and AUP reporting. Withum would be pleased to assist in navigating and maximizing your Illinois Film Production Services Tax Credit.