Incentives Alert: Illinois Film Tax Credit Update (2025): What Producers Need to Know

Producers filming in Illinois, this one is for you!

The film incentive program in Illinois just got better, thanks to Senate Bill 1911.

The bill passed both chambers on October 31, 2025, and was sent to Governor JB Pritzker’s desk on November 25, 2025. The bill was then signed into law on Friday, December 12, 2025, delivering enhanced credits, stackable bonuses, and no program caps — retroactive to accredited productions commencing on or after July 1, 2025.

Illinois film tax credit enhancements: Higher rates & expanded eligibility

Major program enhancements

1. Illinois resident labor: New rate of 35% (from 30%) on labor expenditures for Illinois residents.
2. Illinois vendor spend: New rate of 35% (from 30%) on spending with Illinois-based vendors.
3. Non-actor positions: Up to 13 (from 9), 30% credit on the first $500,000 in wages each.
4. Program susnet: December 31, 2038 (from 2033), offering long-term stability for production and budget planning.

Rules for non-resident actors

Non-resident actors receive a 30% credit on the first $500,000 per actor, with limits based on production budget:

Note: For television series, these limits apply per episode.

Stackable bonus credits (up to anadditional 20%)

Productions can earn up to an additional 20% in stackable bonuses, potentially reaching a total credit of 55% on eligible expenditures:

15% Bonus - Economically Disadvantaged Areas

• For salaries paid to Illinois residents from high-poverty or high-unemployment areas

5% Bonuses (Each Stackable)

• Regional Filming: For labor expenditures of Illinois residents when filming outside Cook, DuPage, Kane, Lake, McHenry, and Will Counties.
• Relocating Series: For a television series' first season, relocating to Illinois from another jurisdiction.
• Sustainability: For productions with a certified 'Green’ sustainability plan.

Illinois film incentives at a glance: Maximum benefits for producers

• Resident labor: 55% (max)
• Nonresident actors: 30% on first $500k (with actor-count limits)
• Qualified Nonresident Positions: 30% on the first $500K
• (Director, Writer, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer, Executive Producer (capped at two), Line Producer, Associate Producer, and Post-Production Supervisor)
• Vendor spend: 35%
• Total project effective rate: Depends on the mix of labor (resident vs. non-resident) and vendor costs

New provisions affecting payroll, airfare, and loan-out companies

Executive Producer Limitation

For productions commencing on or after July 1, 2025, wages paid to no more than two executive producers per accredited production may be considered Illinois labor expenditures. However, if an executive producer receives compensation for another position (e.g., writing services) that person's salary may still qualify and won't count toward the 2-producer limit. Line producers are not subject to this limitation.

Airline Tickets

Airfare is now a qualified production expense if purchased from an airline with its corporate headquarters domiciled in Illinois.

Loan-Out Company Withholding

The production company or its authorized payroll service company are required to withhold tax at the tax rate provided in subsection (b) of Section 201 on all payments to loan out companies for services performed in Illinois for a production that is accredited and commences on or after the effective date of this amendatory Act.

Amounts withheld under the Illinois Income Tax Act subsection (a-10) of Section 701 are now included in the calculation for Illinois labor expenditures. This applies to compensation paid to loan-out companies for services performed by non-resident employees in-state.

Above-the-Line Spending Caps

Illinois labor expenditures do not include:

• Above-the-line Illinois labor expenditures exceeding 40% of total Illinois production spending (unless the Department approves a waiver).
• Above-the-line spending paid to related parties exceeding 12% of total Illinois production spending.
• Below-the-line spending paid to a related party that exceeds fair market value.

Illinois incentive program fundamentals: Eligibility, caps, and infrastructure

With all of the changes coming to the Illinois film and television incentive program, producers can look forward to years of positive momentum in a state hungry to expand it's production business.

The bottom line for proeducers is this: you want to consider filming in Illinois. Before you begin your budgeting, here's a recap of key factors that give the new Illinois incentive program a competitive edge:

• 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 series.
• Low Minimum Spends: $100,000 for programs 30+ minutes; $50,000 for programs under 30 minutes.
• Hotel Tax Exemption: 30+ consecutive days qualify for exemption from 11.9% Illinois Hotel Occupancy Tax (with retroactive credit).
• Infrastructure: State-of-the-art soundstages, experienced union crew, and comprehensive film office support.

For questions or to discuss how these enhancements benefit your production, reach out to your account manager or contact Entertainment Partners' Production Incentives team.