052704IllinoisArchive

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ILLINOIS
May 2006 Update:
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ILLINOIS has terminated its 25% labor credit, and replaced it with a 20% of all in-state expenses transferable tax credit (plus an additional 15% for employees from economically disadvantaged areas).
from Axium Payroll Co.'s "Incentives Guide" - Download yours at http://tinyurl.com/z6kxj
Illinois offers a transferable tax credit against state income tax equal to 20% of the instate
spend for both labor and expenditures. The credit is limited to the first $100,000
paid to each employee, with the two highest paid employees excluded. Additionally,
there are requirements for minority hiring or training. The film commission will help
locate buyers for the credits. Productions are currently receiving up to 88 cents per
dollar for the tax credits, which may be transferred only once, and may be carried
forward for 5 years.
An application is required prior to filming, listing the title, budget, estimated number
of Illinois residents to be hired, percentage of minority workers, etc. It is necessary to
provide documentation showing the incentive credit was essential to the decision to
film in Illinois. A minimum of $100,000 must be expended in the state.
Additionally, the 14.9% hotel occupancy tax will be waived after a room is occupied
by the production for 30 days. After 30 days, the occupant is credited with the taxes
collected for the initial stay. State sales tax is 6.25%, with some municipalities
adding up to an additional 2% or more; Chicago is 8.75%. There is NO exemption
from the sales tax. After finishing the project, the producer must work with a
Certified Public Accountant (ìCPAî) to validate and calculate the local production
spend. The CPA will provide an unqualified opinion of the tax credit earned and will
send all of the documentation the Illinois Film Office.
Chicago is a major production center, and can supply full crew, equipment, studios,
post-production facilities, and processing.

o Production Guide www.illinoisbiz.biz/film/viewlist.asp

Film office
or
Film Office

Illinois Film Office
Brenda Sexton, Managing Director
James R. Thompson Building
100 W. Randolph
Chicago, IL 60601
Phone: 312/814-3600
TDD: 800-419-0667

Springfield Office
620 E. Adams
Springfield, IL 62701
Phone: 217-782-7500
TDD: 800-785-6055

Chicago Film Office
or
Chicago Film Office
1 NORTH LASALLE STREET
CHICAGO , IL60602
Business #: 312-744-6415
Contact Us - Click Here
Email - specialevents@ci.chi.il.us
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Illinois Film Production Services Tax Credit Act - Illinoisí Film Tax Incentive Program Fact Sheet
The Illinois Film Production Tax Credit provides a 25% tax credit on Illinois Income Tax for wages paid by a production company to each employee that is an Illinois resident. Production companies must be also be willing to promote diversity by hiring a percentage of minorities or participating in a job-training, education or recruitment program

The Illinois Film Production Services Tax Credit application can be found at www.illinoisbiz.biz/film/taxcredit.html
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Illinois Film Production Services Tax Credit Act

News Story about the Act:
May 05, 2006
"House OKs New Breaks for filming" - By Cheryl V. Jackson, Chicago Sun-Times Business Reporter

Illinois lawmakers moved closer Thursday to approving a bill that would lure more movie and television production business to the state.

Legislation that would provide a 20-percent tax break on all production-related spending in the state cleared the House on Wednesday, and moved out of a Senate committee Thursday. The package was expected to get Senate approval late Thursday or today. The proposed legislation also provides an additional 15 percent tax credit for hiring workers from economically depressed areas.

Currently, such productions get a 25-percent break on some wages paid to Illinois residents. In recent years, other states and municipalities have upstaged Illinois with more attractive packages to lure the jobs and tourism revenue that such exposure brings. New York City, for example, this year enacted a 5 percent credit on all production spending, in addition to the 10 percent credit the state already offered.

"This bill is going to create a huge economic boom," said bill sponsor Rep. Ken Dunkin (D-Chicago). "This is, by far, the most comprehensive and far-reaching job-creating initiative ever coming out as it relates to film industry jobs."

It would cost the state about $10 million in tax credits, but could triple the amount of film production business the state receives, helping Illinois lure about $300 million a year in production and 35,000 jobs within the next two years, compared with the low of $26 million and 6,000 jobs Illinois attracted in 2002, proponents say.

This version of the bill, which sunsets Jan. 1, 2008, is without a proposed five percent credit designed to benefit a planned West Side Chicago soundstage that the Senate favored. "We're not going to cry about [losing it]," said film producer John Digles, a board member of the Illinois Production Alliance industry group. "This is a strong statement for Illinois." The latest incarnation will expire about a year sooner than the film industry had pushed for, and strips some security from television productions that want to be able to film in a location for a few years before changes in the incentive structure.

Still, if signed by the governor, as expected, the new incentives will make Illinois one of the most attractive states for filming, advocates say.
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Illinois Incentives Keep Rolling (from Variety July 2005) llinois Gov. Rod R. Blagojevich is rolling the film incentive dice one more time, extending them for yet another year.The state's wait-and-see approach since 2003 has provided a yearly payoff with returning film and TV productions boosting film revenues 200%.Pol extended the film tax credits through 2006 by signing Senate Bill 1965 this month on the set of Universal Pictures' "The Break-Up," a romantic comedy currently lensing in Chicago starring Vince Vaughn and Jennifer Aniston................................READ MORE
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MovieMaker 2004 "Top 10 Cities for Moviemakers" - Our fourth annual ranking of the best places in the US to live and make movies (Movie Maker Mag Website)
by James L. Menzies

" In recent years, when Chicago has appeared on film, more often than not it has been portrayed by Toronto (notable examples include 2002's "Chicago" and "My Big Fat Greek Wedding"). But since the Jan. 1 institution of a 25% tax credit on wages paid to Illinois residents working on film and television projects shot in the state, the city has experienced a remarkable turnaround -- attracting productions like Warner Bros. Pictures' "Ocean's 12," in which Chicago will not only portray itself but also New York." - Hollywood Reporter 04/16/04

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Two closed prisons are available for filming, says Brenda Sexton, managing director of the Illinois Film Office in Chicago (call 321.814.600), and photos can be viewed online www.filmillinois.state.il.us.
An old, traditional prison built in 1865 in Joliet features sandstone walls, castle-like parapets, towers, parking lot, and a staff experienced in facilitating production. The second is a modern-looking prison never opened, near Chicago and the Mississippi River, featuring air conditioning, court room, hospital with operating room, and pod cell blocks. .............Production Update Magazine January 2004

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February 3, 2004
Governor Announces 100% Increase in Revenue at Illinois Film OfficeÝ
CHICAGO ? Governor Blagojevich announced that revenues in the Illinois Film Office would be up 100% in 2004 from 2003.ÝÝ With the new legislation attracting studios and filmmakers, film production is expected to increase to an estimated $50 million in 2004, from $25.6 million in 2003. Ý

ìRestoring the film and television industry in Illinois is important to my administration, and I am pleased to see that the outreach and tax incentives to the entertainment community have been a successful first step in bringing production back to Illinois,î said Governor Blagojevich.Ý ìIn the future, movies that are made about Chicago will be shot in Chicago and not Toronto, which is great news for the working men and women of our production community.îÝ

In August of 2003, Governor Blagojevich signed Senate Bill 785, which created a new tax incentive designed to attract the film industry back to Illinois. The new law provides a tax credit equal to 25% of the wages paid to Illinois residents working on television and film projects shot in Illinois.Ý In order to qualify, productions of 30 minutes or more will have to spend at least $100,000 on Illinois labor.Ý Other, shorter film productions may also qualify for the incentive. The law is also expected to enhance the tourism industry in Illinois.Ý

ìGovernor Blagojevichís tax incentive program has had a great effect on Illinois production and has been the key to increasing our marketability and success at bringing the film industry back to Illinois,î said Brenda Sexton, Director of the Illinois Film Office.Ý ìOur office has had the busiest December and January on record, with inquiries from producers up 500 percent.îÝ

At its peak in 1999, film and television production in Illinois contributed an estimated $124 million to the local economy.Ý In 2002, the amount was a mere $27.6 million, a decrease of more than 77 percent.Ý In fact, since 2001, 18 films that were set in Chicago were actually filmed in Canada.
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ÝFrom : Production Update Magazine
7021 Hayvenhurst Ave., Suite 205
Van Nuys, CA 91406
Phone: (818) 785-6362
Fax : (818) 785-8092
Or e-mail us:
James Thompson
Editor / Publisher-in-Chief
jt@updatemag.tv

THE GREAT LAKES STATES
Locations, Infrastructure, Equipment & New Incentives To Lure Your Next Production
By Ruth L. Ratny

.......................The Illinois Film Office, a bureau of the Dept. of Commerce and Economic Opportunity, has a budget that was doubled to nearly $1 million by the first Democratic administration in 30 years. The film office has a staff of nine, including its first-ever diversity officer. It also has, for the first time in the IFO's 30-year history, a financial incentive to offer, along with cooperative unions, crew depth, a strong infrastructure and a new sense of purpose.

ÝIllinois is the exception. Its film office budget has more than doubled to nearly $1 million with the first Democratic state administration in 30 years. The film office has a staff of nine, which includes its first-ever diversity officer. And, also for the first time in its 30-year history, it has a financial incentive to offer along with cooperative unions, crew depth, a strong infrastructure, and a new sense of purpose..................READ MORE