Illinois Film Tax Credit: A Plain Guide for Producers (2026)

Illinois expanded its film credit in 2025, and it now pays more on local spend and local wages than it pays on crew brought in from out of state. It also has a low bar to get in. This guide covers the rates, who qualifies, how residency is proven and how to apply.

Everything below was checked against the Illinois Film Office pages at the Illinois Department of Commerce and Economic Opportunity (DCEO) in September 2026. Incentives change, so confirm with the Illinois Film Office before you budget.

What the incentive is

The Illinois Film Production Tax Credit, run by the Illinois Film Office (IFO) within DCEO, now offers:

• 35% on tangible personal property and services bought from Illinois vendors
• 35% on Illinois resident salaries, up to $500,000 per worker
• 30% on non-resident salaries, up to $500,000 per worker, for a limited number of people (below)

And these extras:

• 15% more on salaries of people who live in economically disadvantaged areas (unemployment at least 150% of the state's annual average) and earn at least $1,000 on the production
• 5% more on Illinois resident salaries for productions filming outside Cook, DuPage, Kane, Lake, McHenry and Will counties
• 5% more for a television series relocating to Illinois
• 5% more for productions certified by the IFO as a "certified green production"

The credit is transferable and can be carried forward five years. The IFO's FAQ says there is no cap on the credit a project can earn and no cap on the program overall.

Who qualifies

Film and television productions and commercials can apply. What matters most is Illinois spend.

Item	What the IFO says
Minimum spend, projects under 30 minutes	$50,000 in Illinois production spending
Minimum spend, projects 30 minutes or longer	$100,000 in Illinois production spending
Wage cap	$500,000 per worker, resident or non-resident
Non-resident crew counted	Up to 13 non-resident employees (not counting actors)
Non-resident actors counted	4 under $20M Illinois spend, 5 from $20M to $40M, 6 over $40M
Executive producers	Wages for no more than 2 per production (line producers are not limited)
Carry forward	5 years

For a TV series, the non-resident wage limits are applied per episode across the whole season.

What counts as local spend

Illinois production spending is:

• tangible personal property and services bought from Illinois vendors
• compensation paid to Illinois resident employees
• non-resident labor within the limits above, for work performed in Illinois

Costs from the final script stage through the end of post can count, including spending before you receive your certificate. The IFO publishes a Qualified Expenditures List with the details.

Who counts as an Illinois resident. The IFO defines a resident as someone domiciled in Illinois during the production, verified by an Illinois driver's license or state ID issued before the production started (or a completed I-9 with that license or ID number and expiration date).

Withholding. For compensation paid on or after December 12, 2025, Illinois requires 4.95% income tax withholding on pay tied to the production, including crew, whether they're paid through payroll, on a 1099 or through an LLC or corporation. Payments for locations, equipment rentals and vendor services not tied to personal services aren't covered by that rule.

How to apply

1. Apply before you shoot. Fill out the Illinois Film Tax Credit Application. Film and TV applications must be received at least 5 business days before principal photography begins in Illinois. Commercials need 24 hours before filming. You have 30 days after submitting to send any remaining paperwork, like proof of copyright or a contract.
2. Accredited Production Certificate. If approved, the IFO issues an Accredited Production Certificate. The IFO is clear that this means the project is eligible to claim a credit. It isn't a guarantee of one.
3. Diversity plan. Before the credit is issued, the IFO checks that you met, or made good-faith efforts toward, the goals in your diversity plan.
4. CPA review. Costs are verified by an independent Illinois-licensed CPA, and the IFO must approve the CPA engagement before the work starts.
5. Claim. Claim the credit after production in Illinois wraps, and no later than two years after.
6. Fee. Since July 1, 2024, a fee applies to all credits awarded: 2.5% of the credit tied to non-resident wages plus 0.25% of the rest. It must be paid before the IFO issues the certificate. There is no fee to apply.
7. Transfer if you want to. Within one year of issuance, the credit can be transferred to up to 10 transferees. It can't be transferred again after that.

Questions go to filmtaxcredit@illinois.gov.

Hiring local crew in Illinois

The 2025 changes put a 5-point gap between resident and non-resident wages, and they cap how many non-residents count at all. Staffing with Chicago-area crew is the simplest way to get the most out of the credit, and shooting outside the six-county Chicago area adds another 5% on resident wages.

You can find Illinois crew on NeedaCrew by role:

• Gaffers in Chicago
• Directors of photography in Chicago
• Sound mixers in Chicago
• Production assistants in Chicago

Or post what you need and let local crew come to you. It's free to post. The hirer pays 5%. Crew keep 100% of their rate.

For other states, see our film incentives by state guide.

Sources

Official sources, all from the Illinois Film Office at DCEO: Illinois Film Production Tax Credit, Rules and Requirements, Application Requirements and Process and FAQs. Checked September 2026.

This is a plain-language summary, not tax advice. Program rules, rates and fees change. Confirm every detail with the Illinois Film Office and your production accountant before you budget.