Illinois Boosts State’s Film Production Tax Incentives With Higher Credits & Expanded Eligibility, Extending Program Through 2039

Illinois Governor JB Pritzker signed into law Wednesday a significant expansion of the state’s film production tax credit program.

The revisions to the incentive program, which does not have an annual spend cap but does limit per-person compensation, include increasing the credit value for hiring Illinois residents and engaging Illinois vendors from 30% to 35%.

There is also expanded eligibility for non-resident positions as well. Illinois-based productions may now include up to 13 non-resident crew positions instead of nine and are eligible to receive a 30% credit on the first $500,000 of each qualifying salary. Non-resident actors also remain eligible for the same credit with updated allowable counts based on project budget, including four eligible actors for projects under $20M. For series, the limits apply on an episodic basis.

In an effort to boost statewide production, lawmakers have also added a 5% additional stackable bonus incentive for productions filmed outside of Cook, DuPage, Kane, Lake, McHenry, and Will counties as well as 5% for relocating series and 5% for productions that implement a sustainability plan.

The revisions will take effect immediately and will apply retroactively to all qualified applications submitted on or after July 1, 2025. With Wednesday’s bill signing, Pritzker has also extended the program through 2039.

“The Film Production Tax Credit continues to fuel an industry that is central to Illinois’ cultural and economic vitality,” Pritzker said in a statement Wednesday. “With this expansion, we are doubling down on our commitment to building a world-class creative workforce and ensuring that productions from around the globe choose Illinois as their home.”