summary
Introduced
02/06/2025
02/06/2025
In Committee
06/01/2025
06/01/2025
Crossed Over
05/08/2025
05/08/2025
Passed
12/12/2025
12/12/2025
Dead
Signed/Enacted/Adopted
12/12/2025
12/12/2025
Introduced Session
104th General Assembly
Bill Summary
Amends the State Finance Act. Provides that the sum of $17,653,153 shall be transferred from the General Revenue Fund to the Audit Expense Fund. Amends the Illinois Income Tax Act. Removes provisions providing that the pass-through entity level election applies only for tax years beginning prior to January 1, 2026. Provides that an addition modification and corresponding deduction for a bonus depreciation deduction under subsection (k) of Section 168 of the Internal Revenue Code also apply to a bonus depreciation deduction for qualified production property under subsection (n) of Section 168 of the Internal Revenue Code. Amends the Film Production Services Tax Credit Act of 2008. Makes changes concerning the credit amount. Provides that wages paid to no more than 2 executive producers per accredited production may be considered Illinois labor expenditures. Creates an exception to the 2-producer limitation for executive producers who receive compensation for other positions on the accredited production. Makes changes concerning conditions under which wages paid to nonresidents qualify as Illinois labor expenditures. Provides that no new credits may be awarded under the Act for tax years beginning on or after January 1, 2039. Amends the Illinois Income Tax Act. Provides that, with respect to compensation paid for in-State services performed for an accredited production under the Film Production Services Tax Credit Act, if the compensation is paid through a loan out company, then the production company or its authorized payroll service company shall withhold taxes on that compensation. Effective immediately.
AI Summary
This bill makes several significant changes to tax and film production incentives in Illinois. The bill primarily modifies the Film Production Services Tax Credit Act of 2008, expanding and enhancing tax credits for film and television productions. Starting July 1, 2025, the bill increases the tax credit percentage for Illinois production spending to 35% for tangible personal property and services from Illinois vendors, with additional 30% credits for nonresident wages and 15% credits for labor expenditures in high-poverty areas. The bill also introduces new credit tiers, including 5% credits for television series relocating to Illinois, productions in counties outside the Chicago metropolitan area, and productions certified as environmentally green. For nonresident wages, the bill adjusts the limitations on qualifying positions and number of actors based on the production's total spending. Additionally, the bill extends the sunset date for these film production credits from January 1, 2033, to January 1, 2039. The bill also includes provisions related to tax withholding for loan-out companies in the film industry and makes various technical modifications to the Illinois Income Tax Act concerning bonus depreciation and pass-through entity taxation.
Committee Categories
Budget and Finance, Government Affairs
Sponsors (16)
Elgie Sims (D)*,
Curtis Tarver (D)*,
Cristina Castro (D),
Javier Cervantes (D),
Mary Edly-Allen (D),
Paul Faraci (D),
Sara Feigenholtz (D),
Graciela Guzmán (D),
Don Harmon (D),
Mattie Hunter (D),
Adriane Johnson (D),
Kimberly Lightford (D),
Robert Peters (D),
Mike Simmons (D),
Karina Villa (D),
Mark Walker (D),
Last Action
Added as Chief Co-Sponsor Sen. Paul Faraci (on 01/13/2026)
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