Illinois film production tax credit act

Illinois production incentives include 30%to40% tax. Table of contents illinois administrative code last. In addition, the tax credit aims to stimulate diversity in production hiring. Film tax credit program pa department of community. How extractions sam hargrave used his experience as a stuntman on his feature directorial debut. Pritzker signs film tax credit to encourage tv, movie production in. Film production tax credit nm taxation and revenue. Application requirementsprocess film tax credit illinois. This act may be cited as the film production services tax credit act of 2008. Adoption tax credit il film production tax credit il live. S corporation state business tax filing software taxact.

Amended small business corp replacement tax return. Income tax subtractions 2016 schedule 1299c and credits. How extractions sam hargrave used his experience as a. Pursuant to the illinois freedom of information act. Based on fanciful estimates of economic activity and tax revenue, states invest in movie production projects with. Movie production incentives in the united states wikipedia. Except as otherwise expressly provided or clearly appearing from the context, any term used in this act shall have the same meaning as when used in a comparable context in the united states internal revenue code of 1954 or any successor law or laws relating to federal income taxes. Please visit the link, qualified expenditures, to view a complete list of the production and postproduction qualifications under the tax credit act. S corporation state business tax filing software taxact business. Contact us for expert assistance on locations, housing, and tax credit to help make your creative vision a reality. The amount of the credit awarded under this act is based on the amount of the illinois labor expenditure and illinois production spending approved by the department for the production as set forth under section 10. New mexico offers a film production tax credit for film production companies that have direct production and direct postproduction expenditures that are subject to taxation by the state of new mexico.

Film tax credit electronic ittrans submission outside of a gtc login. There are no caps for potential benefit for this credit. Many states provide financial incentives for film and television production. Article 5 the illinois independent tax tribunal act is compiled at 35 ilcs 1005 article 10 live theater production tax credit act. Illinois is bringing back its film tax credit program deadline. Illinois offers a robust and sustainable 30% film tax credit and is the only u. Plus, get oneonone guidance from our tax specialists and technical experts by email and phone for free. Mar 02, 2020 the illinois tax credit kind of does that for us. Kpm film is cpa firm who serve as trusted advisors to state tax offices and film bureaus, attorneys, producers and studio finance departments on the subject of film tax credits across the u. Located in chicago illinois over 30 acres, chicago studio city is a fullservice, independent studio featuring 4 sounds stages ranging from 6,000 to30,000 sq. Film production incentive programs offer production companies an incentive, such as a tax credit or rebate, based on their qualified production costs incurred in a particular state.

At the time the prison break tax credit was the largest tax credit issued in illinois history. In december of 2008 the illinois general assembly passed the illinois film production tax credit act, which offers producers a credit of 30% of all qualified expenditures, including postproduction. Illinois is home to a thriving film industry with a nationally renowned crew base, actors, and industry vendors. An illinois vendor is an entity that provides goods and services to the applicant and is domiciled in the state. Illinois compiled statutes 35 revenue illinois attorney. State extends film tax credits to keep chicago fire and other. So, after the confusion of yesterday, it seems today that we finally have a coherent party line on the return of illinois film tax credit. Check out our locations, from the beautiful, iconic chicago skyline and 58 mile lakefront to the gritty back alleys and unique historic neighborhoods. Commercial advertising applications must be submitted at least 24 hours prior to start of filming in illinois.

Mar 16, 2018 illinois production incentives include a 30%to40% transferable tax credit. The illinois affordable housing tax credit iahtc encourages private investment in affordable housing by providing donors of qualified donations with a onetime tax credit on their illinois state income tax equal to 50 percent of the value of the donation. Additional 15% credit applicants will receive an additional 15% tax credit on salaries paid to individuals. The tax credit accountability act reporting form must be submitted to ded by june 30 each year for three years following the year of the first issuance of tax credits, including the following information. Illinois film services tax credit illinois institute for. It really is the driving force behind the upswing, without a doubt. Mpis are popular with state officials and many of their constituents but often escape routine oversight about benefits, costs and activities. New mexico offers a film production tax credit for film production companies that have direct production and direct post production expenditures that are subject to taxation by the state of new mexico. Nys film tax credit program guidelines, page 6 include most belowtheline items associated with production such as labor costs incurred on set construction, crew and camera equipment, film stock, developing and printing of a film etc.

The following are the rules and requirements for the illinois film tax credit. The donor can choose to transfer the credits to the project, which creates additional project financing through syndication of the credits. State of illinois 2017 and 2018 sb1253 introduced 272017, by sen. The representative noted chicagos growing influence on the film and tv industry, explaining that the city offers tax breaks a 30 percent film tax credit, plus a 15 percent bonus thats. Illinois chapter 35 revenue 2005 illinois code illinois.

The credit equals 20% of qualified production costs incurred on oahu, and 25% on the neighbor islands big island, kauai, lanai, maui, molokai. Production act allows companies up to two years to claim a tax credit, so they can effectively include and report claimants actual expenditures. This act shall be known and may be cited as the illinois income tax act. The state of illinois offers a 30% transferable tax credit for qualified productions. The purchaser of a remediation site and the tax credit shall succeed to the unused credit and remaining carryforward period of the seller. Adoption tax credit il film production tax credit il live theater. The donor can choose to transfer the credits to the project, which creates additional. In the last decade, state governments have enacted numerous movie production incentives mpis, including tax credits for film production. Illinois film tax credit program is a slap in the face to the states small business community outside the spotlight, does little to grow good jobs and is rife with corruption. The accounting firm then issues a report of its findings andor the tax credit profile directly to the state film office. The goal of the tax credit act is to attract local vendors, union leaders and filmmakers to the illinois film industry in order to promote growth and job opportunities. Most state revenues come from a tax on production of oil and gas. Illinois production spending includes tangible, personal property and services purchased from illinois vendors and compensation paid to illinois resident employees.

Provides that a taxpayer shall not be entitled to take a credit under that act for tax years beginning on or after january 1, 2027. The film commission attracts film, television, video and cable productions to missouri, and to promote the growth of the film and video production industry within missouri. Taxact alerts meticulously inspects your return for any errors, omissions, and valuable taxsaving opportunities you may have missed. The illinois film production tax credit act provides a tax break of at least 30 percent for specific expenses. Movie production incentives are tax benefits offered on a statebystate basis throughout the united states to encourage instate film production. The law is set to expire in three years unless its renewed. Illinois film production services tax credit quarterly. Illinois film industry in order to promote growth and job opportunities.

Uses recipients of a film production tax credit my use the tax credit to offset their pennsylvania state tax. Illinois film services tax credit film tax credit illinois. Motion picture production program louisiana entertainment. Pritzker also praised the recently reauthorized research and development tax credit for manufacturers, which sunsets in 2027. In 2008 the illinois general assembly passed the illinois film production tax credit act, offering producers a credit of 30% of all qualified expenditures, including postproduction. Applicants must fill out theillinois film tax credit application. Motion picture production program for a complete overview of changes made in 2017, click here. State film production incentivesprograms statejurisdiction film production incentivecredit program illinois in 2008, the general assembly passed the film production tax credit act, which offers producers a transferrable credit of 30 percent of all qualified expenditures, including postproduction, and will. The illinois film production tax credit act, initially passed in 2008, provides a 30 percent tax credit for production spending and labor. State officials tout record film spending in illinois. The illinois film production tax credit act, now more than a decade old, offers various incentives for production spending and labor costs in the state.

This program is a rebate, not a tax credit which offers very generous rates. An election under this section with respect to any qualified film or television production or any qualified live theatrical production shall be made in such manner as prescribed by the secretary and by the due date including extensions for filing the taxpayers return of tax under this chapter for the taxable year in which costs of the. The illinois film tax credit is currently scheduled for legislative renewal in 2026. Heroes act first bid to provide phase 4 relief for businesses and individuals. Film production tax credit department of economic development. Alaska ends film tax credit program tax foundation. Unlike some other states film production tax incentives, illinois doesnt.

An illinois vendor is an entity that provides goods and services to the applicant and is domiciled in. Applicants must fill out the application form provided by ifo. Illinois production incentives include a 30%to40% transferable tax credit. State tax officials want to limit film tax credits. Film tax credit electronic ittrans submission inside of a gtc login.

Our stages offer fully furnished production office space with large bullpens and suitestyle executive offices. In 2008 the illinois general assembly passed the illinois film production tax credit act, offering producers a credit of 30% of all qualified expenditures, including. Illinois is a world class destination for film, television and advertising production. The illinois film tax credit is currently scheduled for legislative renewal in 2026, and is renewable in 5year increments, thereafter. Recent laws may not yet be included in the ilcs database, but they are. Aug 10, 2018 the illinois film production tax credit act provides a tax break of at least 30 percent for specific expenses. In exchange for the film production incentive, the state boosts its economy through the creation of jobs and consumption of goodsservices associated with the film.

The film production tax credit is a 30% tax credit on qualified costs incurred in new york state for eligible productions. The statute requires that a full year pass after the issuance of the tax credits before sb1099 reporting requirements must be met. Movie production incentives are costly and fail to live up to their promises, researchers for the nonpartisan tax foundation wrote in 2010. According to a news release put out by the governors office, the illinois film production tax credit act, originally passed in 2008, offers a 30. Ebs launched its film production tax credit offering in 2007 when it was engaged by the state of illinois to perform the certification of the fox television series prison break. The commission operates a fullservice office devoted to saving filmmakers time, effort and money in arranging a shoot. Explanation of the new film tax credit reporting and ittrans process. Illinois boasts breathtaking natural vistas, rivers, prairies, industrial centers, picturesque farmland and small towns seemingly frozen in time. Aug 01, 2019 pritzker also praised the recently reauthorized research and development tax credit for manufacturers, which sunsets in 2027. For tax years beginning on or after january 1, 2004, a taxpayer who has been awarded a tax credit under the film production services tax credit act or under the film production services tax credit act of 2008 is entitled to a credit against the taxes imposed under subsections a and b of section 201 of this act in an amount determined by the department of commerce and economic opportunity. Film production tax credits film incentives programs by state. For applications received on or after july 1, 2017, louisianas motion picture production program, statutorily known as motion picture production tax credit, provides motion picture productions up to a 40% tax credit on total qualified instate production expenditures, including resident and non. To qualify for a tax credit, a production company typically has to spend a certain amount of money in the state, employ a minimum number of local workers, or invest in local infrastructure.

In addition to helping production companies optimize and monetize state tax incentive programs, we provide a variety of advisory, audit and tax services. Table of contents illinois administrative code last updated. Some provincial tax credits, such as the british columbia film and television tax credit, may also apply a. Nov 21, 2019 this is a refundable tax credit based on a production companys qualified hawaii expenditures while producing a qualified film, television, commercial, or digital media project. Article act 84 of 2016 article xviid, the entertainment production tax credit authorizes the issuance of film production tax credits in an effort to expand pennsylvanias film industry. Film television applications must be submitted at least 5 business days before principal photography begins in illinois. Illinois extends state film production tax credit through 2026.

To qualify for a tax credit, a production company typically has to spend a certain. Personalized help is available 247 in the answer center and online. Illinois compiled statutes 35 ilcs 52 film production. Payment voucher foramended small business corp replacement tax return. Illinois film tax credit program is theatrically bad illinois policy. Updating the database of the illinois compiled statutes ilcs is an ongoing process. Adoption tax credit il film production tax credit il. Beginning on january 1, 2004, the film production services tax credit legislation created a tax incentivecalled the film production services tax credit meant.

Pritzker signs film tax credit to encourage tv, movie. The amount of labour expenditure for purposes of the cptc is capped by a production cost limit equal to 60% of the cost or capital cost of the production the production cost. Film production tax credit nm taxation and revenue department. For questions about the illinois film services tax credit please contact cesar. Therefore, the figures reported may be for film, television and commercial projects dating back to 201 6. Pritzker signed legislation to extend the states film tax credits in an effort to attract more industry jobs. Illinois production incentives include 30%to40% tax credit. Twentyeight states offer movie production incentives in the form of a tax credit that removes a portion of the companies income tax.

The duration of the credit may not exceed one taxable year. The illinois film tax credit will not sunset until may 2021, and is renewable in 5year increments, thereafter. Illinois compiled statutes illinois general assembly. Enter the amount of available credit from the tax credit certificate you received from the department of commerce and economic opportunity dceo or that was transferred to you see instructions.