Maximizing Illinois’ Film Tax Credit: Key Takeaways from Master Series Panel

With the launch of the newly enhanced Illinois Film Tax Credit, the Prairie State has emerged as a film and television power player—equipped with state-of-the-art infrastructure, professional vendors, and a highly skilled workforce to match. Competing for productions of all sizes, the state now stands on par with major hubs in the U.S. and around the world.

At a recent Master Series webinar, moderator Joseph Chianese was joined by Eoin Egan (Co-CEO, Cinespace Studios), co-executive producer Dana Scott (Beef, Ozark), and executive producer Richard S. Lederer (Empire, Power Book IV: Force) to discuss why major productions are choosing to film in Illinois, and the many ways incoming productions can benefit from filming in the state, including:

• Zero annual and per-project caps
• Long-term stability with a sunset date of 2038 and a transferable credit
• Opportunities for a broad range of qualifying productions, including scripted features and series, pilots, television movies, commercials, unscripted/reality TV, documentaries, and post-production
• The 35% base credit and stackable uplifts that can reach as high as 55% for some qualifying productions
• Illinois as a one-stop shop, offering established and experienced film crews, including talented department heads, combined with studio space, well-established vendors, and production infrastructure

While the incentive program improvements are significant, there is a lot to consider when evaluating Illinois as your next filming destination. In the webinar, EP helps clarify key questions productions face when choosing the most cost-effective and strategic location. 

Entertainment Partners takes the guesswork out of film and television tax incentives. If Illinois seems like the right fit for you, reach out to EP’s Production Incentive team and get the conversation started.

No caps and long-term stability

The Illinois Film Tax Credit program was designed to create long-term stability, as Joe Chianese notes, bringing "freedom to production decisions.”

Three key factors contributing to this stability are:

• No Caps: No project-level caps, no annual program caps, and fully transferable credits
• Wage Cap: $500,000 maximum eligible compensation per employee (resident or non-resident), applied per episode for television series
• Extended Sunset Date: Program extends through 2038

This long-term commitment creates confidence for producers who can plan multiple seasons and future projects in the state. As Richard Lederer points out:

“The sunset clause, which goes to 2038, helps the infrastructure and helps small business. There'd be no infrastructure happening if the tax incentive only lasted a year. In 2009, the sunset date extended to 10 years. And at that point, [Illinois] became an episodic town. That's also when Cinespace opened its doors.”

From 2009 to 2020, Illinois’ film industry grew significantly from a five-show town to having the capacity for 15–20 shows, led by local department heads and crew. With the sunset date extending to 2038, Illinois is reinforcing the longevity of existing businesses while creating confidence for new ones to invest in the state.

Breaking down the 55% stackable credit

How does a production reach a potential 55% stackable credit? In the webinar, the panel breaks down:

• What’s included in the 35% base credit
• The 5% stackable uplifts and how to access them
• Flexibility in structuring spend
• The transferability of the credit

While not every production will achieve the full 55%, as Richard explains, “It's a potential. And what it really does is give the accounting staff freedom to increase the incentive number.”

That flexibility can significantly impact a production’s bottom line. Stackable 5% uplifts include:

• Hiring from economically disadvantaged areas: For salaries paid to Illinois residents from high-poverty or high-unemployment areas.
• Regional filming: For labor expenditures of Illinois residents when filming outside Cook, DuPage, Kane, Lake, McHenry, and Will Counties.
• Relocating TV series: For the first season of a television series relocating to Illinois from another jurisdiction.
• Sustainability: For productions with a certified green sustainability plan.

As Dana Scott notes, “The stacking benefits factor into every decision that's made. The extra 5% is huge…for certain shows, especially ones that want to be here. It means you're putting more money on the screen.”

The panel also discusses loan-outs and the transferability of credits, which can provide additional structuring flexibility for production finance teams.

Although the loan-out program requires a third-party CPA audit of expenditures, Chianese and Lederer outline best practices for preparing from day one. With agreed-upon audit procedures in place, productions can streamline the process by setting up properly from the beginning. Chianese also notes that Entertainment Partners can help connect productions with experienced accountants to navigate the audit efficiently.

Concerns about selling credits are also addressed during the discussion. As Dana explains:

“I've never seen a project have a problem selling their credit. There's an endless list of buyers who want the credit.”

In addition, Illinois may follow the example of New Jersey, which recently introduced a buyback program. As Joe Chianese explains, “New Jersey just recently introduced a buyback program where the state's going to buy back the credit at $0.95 on the dollar, which is pretty significant.”

Illinois is a production's one-stop shop

Beyond the generous incentive structure, Illinois has built a mature production ecosystem designed for long-term growth. This includes:

• An established and experienced crew base
• Department heads rising through the ranks
• Strong vendor relationships
• World-class studio space, including Cinespace Studios

Productions starting in or relocating to Illinois can be confident that “you can get pretty much anything you need within the state,” says Eoin Egan.

Regarding labor, the Illinois Film Tax Credit provides:

• Resident labor: Up to 55% (when stackable uplifts apply)
• Non-resident actors: 30% on the first $500K (subject to actor-count limits)
• Qualified non-resident positions: 30% on the first $500K
• Expanded eligibility: Up to 13 non-resident crew positions of the production’s choosing, subject to a program limitation of two non-resident producers per project
• Vendor spend: 35%

“At this moment, you can hire your DP, your costume designer, and every department head from Illinois,” explains Richard. “We have a great infrastructure.”

While hiring locally maximizes benefits, Illinois also provides flexibility when bringing in select non-resident crew members. As Dana notes, “13 really does cover a lot of the traditional positions that you would see being brought in by a production.”

The panel also highlights the strategic inclusion of above-the-line (ATL) positions, particularly actors, as an important component in attracting larger studio projects. This shift puts Illinois on par with states like New York, which has recently expanded ATL eligibility.

Eoin adds that the inclusion of ATL has also driven renewed interest in independent film:

“The trend that I'm seeing is in independent film…with the inclusion of Above the Line for medium-sized budget films coming back to Illinois. 

That's really important for our vendors and the crew base…you can learn, you can get promoted in different crew positions. So that's a nice positive trend.”

Final takeaway: It’s vital to stay relevant in the global incentive competition

Incentive competition is more than a state-by-state comparison, it’s an international race. Richard underscores the importance of staying globally competitive:

“We're trying to keep things in the United States. Since the [2023] strike, it's not just a question of where you want to go—Toronto, Chicago, Atlanta, or New Jersey—it’s a must to go to places with the best incentives now. So, it's a global competition…it's all about the bottom line.”

He adds that enhancements to the Illinois program help ensure the state remains part of that conversation. Illinois isn’t simply reacting; it’s positioning itself for long-term stability and sustainable industry growth.

At Entertainment Partners, our incentives experts work with producers to identify, secure, and manage incentives, helping projects maximize budgets while minimizing complexity. As Eoin concludes:

“People want state-of-the-art, best-in-class, big turnkey, and safe work environments—but it's also about being scrappy and adaptable. That’s what we're focusing on here in Illinois.”

Watch the full recording to learn more about the Illinois film tax credit program and how you can maximize the state’s generous incentive for your next project.