What Illinois' Enhanced Film Tax Credit Program Means for Productions

Illinois has long been a cornerstone of American cinema, dating back to the early 1900s when Chicago housed more film production companies than any other city—even before Hollywood established itself as the nation's entertainment capital. 

With the passage of Senate Bill 1911, the Prairie State is experiencing a renaissance that honors its past while positioning itself a major filming destination in the Midwest.

The recently announced 2024 production expenditures of $653 million, the second-highest total in state history, demonstrate Illinois' resilience and appeal to productions of all scales. This achievement follows the unprecedented $700 million milestone set in 2022 and signals a robust recovery from the industry-wide strikes that halted production in 2023. With estimated wages of $351 million and 18,200 industry hires (excluding extras) in 2024 alone, the economic impact of this new Bill passing extends far beyond soundstages into hotels, restaurants, equipment vendors, and the state's diverse union workforce. 

In this article, I’ll break down the high points of the legislation, the impact the expanded incentive will have on Illinois, and how incentive program changes like these are strengthening domestic film business in the Midwest.

Enhancing the Illinois Film Tax Credit: A game-changer for productions

The newly expanded Illinois Film Tax Credit, enhanced through Senate Bill 1911 and effective for productions commencing on or after July 1, 2025, establishes Illinois as one of the most competitive production destinations in North America.

The program offers substantial benefits for Qualified Illinois Production Spending (QIIPS) that rival—and in some cases exceed—those of traditional production hubs. 

Base Illinois film tax credit changes

• 35% credit on Illinois resident labor expenditures (increased from 30%)
• 35% credit on spending with Illinois-based vendors (increased from 30%)
• 30% credit on wages paid to non-resident crew and talent
• New travel benefit: Airfare is now a qualified production expense if purchased from an airline with its corporate headquarters domiciled in Illinois

Stackable bonus credits

Productions can earn up to an additional 20% through stackable incentives, potentially reaching a total credit of 55% on Qualified Illinois Production Spending (credit is limited to Illinois Resident Labor):

• 15% bonus for salaries paid to Illinois residents from economically disadvantaged areas
• 5% bonus for filming outside the six-county Chicago metropolitan area (Cook, DuPage, Kane, Lake, McHenry, and Will Counties)
• 5% bonus for television series relocating their first season to Illinois
• 5% bonus green production credit for productions with certified sustainability plans

Flexibility for non-resident positions

Illinois now permits up to 13 non-resident positions of the applicant’s choosing (increased from 9) to qualify for the 30% credit, giving productions greater flexibility in hiring for key creative positions. This includes the existing program limitation on producers, allowing up to two (2) non-resident producers per project.  

For actors, the program offers tiered eligibility based on production budgets: 

• Productions with budgets under $20 million can include four non-resident actors
• Productions with budgets between $20 million to $40 million can include five non-resident actors
• Productions with budgets exceeding $40 million can include six actors, with all limits applied per episode for a television series

No caps and long-term stability

Unlike California and New York, Illinois maintains no annual program caps and no per-project credit limits, providing crucial certainty for production planning. The program's sunset date has been extended to December 31, 2038, offering long-term stability that allows producers, studios, and networks to commit to multi-year projects with confidence.

Positive economic impact for Illinois

The numbers tell a compelling story: Illinois' Film Tax Credit has generated a $6.81 return on investment for every dollar spent on the incentive, resulting in over $4.5 billion in economic activity between FY17 and FY24. Notably, 94% of Illinois' current film industry economic impact is attributed to the expanded tax credit program.

This economic activity extends throughout the state's economy. Production companies support local businesses across numerous industries, including:

• Catering and restaurants
• Hotels
• Transportation services
• Equipment vendors
• Costume and prop rental houses
• Construction firms

The multiplier effect of production spending creates sustained economic benefit that reaches far beyond the immediate production timeline, supporting the livelihoods of countless individuals and the overall economic health of the state.

From Essanay Studios to modern soundstages: A legacy of innovation

Today, Illinois boasts world-class production infrastructure, anchored by major studio facilities that rival those of any market in North America. Leading this infrastructure is Cinespace Chicago, which features 36 active soundstages across more than 1.6 million square feet on two campuses located just 15 minutes from downtown Chicago.

As the second-largest film studio complex in North America, Cinespace has hosted more than 40 major productions and served as home to long-running series including ‘Chicago Fire,’ ‘Chicago Med,’ ‘Chicago PD,’ and numerous other network, streaming, and feature film productions.

The Cinespace facilities offer comprehensive production support, including soundstages of varying sizes to accommodate productions of any scale, production offices with full connectivity, carpentry shops and paint areas, prop storage facilities, wardrobe and dressing rooms, and extensive parking for production vehicles and equipment trailers.

The studio complex has been instrumental in revitalizing Chicago's North Lawndale neighborhood, creating more than 15,000 jobs and infusing billions of dollars into the city and state economies.

Beyond Cinespace, Illinois' production infrastructure continues to expand: 

• Chicago Studio City offers four soundstages totaling over 60,000 square feet, with plans to double its capacity. The recent expansion of production facilities demonstrates industry confidence in Illinois' future. [NN3] 
• The Fields Studios is transforming a 23-acre site to house 132,000 square feet of soundstages and over 350,000 square feet of production and office space, featuring nine stages ranging from 5,000 to 18,000 square feet.
• And specialized facilities like SMASH Virtual Production Studio offer cutting-edge LED volume technology, providing productions with virtual production capabilities that complement traditional soundstage work.

World-class crew and comprehensive production services

Illinois's experienced film industry workforce embodies one of the state's most significant competitive advantages: the state's union crews bring decades of collective knowledge and expertise to every production. The depth of Illinois talent extends across all departments—from camera operators and gaffers to production designers, editors, and post-production specialists, including: 

• IATSE Local #476 
• Cinematographers Local #600 
• Wardrobe Local #769 
• SAG-AFTRA Chicago 
• DGA 
• Chicago Federation of Musicians 
• Teamsters

The state's commitment to workforce development ensures this talent pipeline continues to grow. The Film and TV Workforce Training Program, launched in 2022, trains and hires over 200 individuals annually from historically underrepresented communities. Organizations like Free Spirit Media, supported by the Illinois Film Office, have significantly increased their capacity to identify, nurture, and equip the next generation of filmmakers and media professionals. 

If you’re currently looking for a qualified Production Assistant through this program, here’s the most up-to-date IFO PA Directory. 

Illinois also offers a comprehensive ecosystem of production support services, including equipment rentals, post-production facilities, casting services, transportation companies, and specialized vendors. The Chicago Film Office serves as a one-stop liaison for all City of Chicago production needs, providing permits, city services, and logistical support. With affordable permit fees, the lowest of any major domestic metro—and a film office team dedicated to facilitating smooth productions, Illinois removes traditional barriers that can complicate location filming.

The state’s geographic versatility, combined with the regional filming bonus, incentivizes productions to explore Illinois beyond the Chicago metropolitan area, bringing economic activity to communities across the state's 39 counties, 30 of which are designated as rural. 

Recent productions demonstrate Illinois' range and flexiblility

Illinois's production slate demonstrates the state's ability to attract and support premium content across all formats. Notable recent and current productions include long-running franchises and critially acclaimed series and films:

Television Series:

• Chicago Fire, Chicago PD, and Chicago Med (NBC)
• The Bear (FX)
• Dark Matter (Apple TV+)
• The Chi (Paramount+)
• Power Book: Force (Starz)
• Monsters (Netflix)
• Somebody Somewhere (HBO Max)
• Deli Boys (Hulu)

Feature Films:

• Ghostlight (IFC)
• Love Language (3 Arts Entertainment)
• The Up and Comer and Enemies (A24)

Looking forward: Illinois' vision for film growth

As the Illinois Film Office celebrates its 50th anniversary, state leadership remains committed to strengthening Illinois' position as a premier production destination. The recent legislative enhancements reflect a strategic understanding of what productions need: competitive financial incentives, world-class infrastructure, experienced crew, diverse locations, and long-term program stability.

Governor JB Pritzker's vision for the industry emphasizes not only attracting major productions but also investing in the future by continuing to enhance workforce development programs that increase diversity and build a qualified talent pipeline.

"Through the Film and TV Workforce Program, we have invested in the future of the industry—increasing diversity and building out a qualified pipeline of hundreds who are equipped to serve on film crews and making it possible for us to attract major productions," Governor Pritzker stated. "Our success is a testament to our hard work and partnership, as well as the undeniable charm of Illinois and our people that make us a prime creative destination.

From the earliest days of Essanay Studios to today's streaming-era productions, Illinois has consistently proven that great stories can be told—and major productions can thrive—in the heart of America. With production infrastructure continuing to expand and the Film Tax Credit program extended through December 31, 2038, Illinois continues its commitment to supporting productions of all scales for years to come.

Entertainment Partners supports production in Illinois and continues to work closely with the Illinois Film Office, the Illinois Production Alliance, and the larger production community to maximize the benefits of the state's enhanced incentive program.

Explore our Incentives Tools to compare jurisdictions and estimate the tax incentives for your next production, or reach out to our team of team of experts to get started!