As of late 2025, the Illinois film tax credit offers a 35% base credit for most in-state production spending, including for commercial and branded films. It also offers additional uplifts for qualifying productions, and it has no per-project or annual program caps.
This guide explains how film tax credits work and how this new incentive can apply to your Illinois production.
Various states offer tax credits for film productions to build the local film industry and encourage producers to invest in the state.
Tax credits typically apply only to qualified in-state production spend, such as local crew wages and film studio rental costs. However, specific factors, such as the minimum spend threshold and what is actually included, vary by state.
Film tax credits aren't automatic. Most states require you to apply for incentives before filming, lay out your production spending, and track and report every expense along the way.
Additionally, you can't immediately deduct your tax credit from your production costs. Instead, this return comes back later, either as carryforward for your future tax liabilities or as transferable credits you can sell through brokers and third-party buyers.
The Illinois Film Production Tax Credit Act was expanded in December 2025 under Senate Bill 1911 (SB 1911). It now offers a 35% base credit for qualified production spend, with no per-project or annual program caps. Additional credits can raise your incentive amount depending on your production type, location, crew, and other variables.
Here are key details to know about Illinois film incentives:
Keep in mind that, since these changes are still recent, there are still many stale figures and numbers online. If you're unsure, double-check the Illinois Department of Commerce and Economic Opportunity (DCEO) website or consult a qualified Illinois film-certified public accountant (CPA).
Right now, these Illinois film incentives aren't scheduled for renewal until 2039. So, unless something changes, it's absolutely in producers' and agencies' best interests to learn how film tax credits work and how to distinguish qualified spending.
The Illinois Film Office (IFO) tax credit applies to most production-related spending, as long as the money is spent in Illinois or put toward Illinois residents. Specifically, the 35% base credit applies to the following types of production spending:
Productions must also meet the following requirements to qualify for the Illinois and Chicago film tax credits:
You can apply for Illinois's film tax credit directly from the DCEO or Illinois Film Office website. This is the standard, most direct way to apply for the film incentive, though a CPA and professional production partner can help you through the process.
Be aware that commercial advertising applications and film and television applications differ, as do their timelines.
You must submit the Illinois film tax credit application at least 24 hours before filming if you're producing a commercial advertising production — and at least five days in advance if you're producing a feature film or television project. Fortunately, with proper pre-production planning, this should be ample time for any production type.
Productions seeking the additional 5% credit for certified green productions require more complex timelines and processes. You'll typically need to hire a certified third-party sustainability vendor to communicate directly with the Illinois Film Office, which can take more time.
Qualified production costs are verified after production. This means that the Illinois and Chicago film tax credits don't offer upfront production discounts. Instead, they typically offer a guaranteed return after production ends, though the exact timeline can vary based on the options you choose.
After production wraps, you have up to two years to gather all records, including receipts, invoices, and payroll. You must then prepare a final expenditure report and file a final tax credit claim package with the Illinois Film Office. Fortunately, a CPA and experienced production partner can help you streamline this process.
Once the IFO reviews, verifies, and issues your tax credit award, you have two options:
Forge's gated guide, "Inside the Illinois Film Production Tax Credit Advantage," breaks down what these numbers could look like for real Chicago productions.
Let's say a brand aims to spend around $75,000 on virtual production for a new brand film (but it really ends up spending around $82,000). Under the Illinois film production services tax credit, this production can claim a 35% credit for every purchase, excluding talent buyouts, agent fees, and insurance. Fortunately, these unqualified costs total less than $3,000, so the credit applies to every other dollar spent. This brings the tax savings up to nearly $28,000.
Keep in mind, the results of this scenario (and the others in the guide) depend on qualified spending and scenario-specific assumptions, such as the production's size. Your actual outcome will be unique to your specific project.
Various additional credits can stack atop the 35% base credit depending on your production's circumstances. These program uplifts can further raise your potential return and support your project's long-term affordability:
Even if you know the basics, it can take a while to truly understand how film tax credits work. A qualified CPA can help you make sense of SB 1911 and answer project-specific eligibility questions. This way, you can maximize every dollar of your production and avoid the most common tax credit slip-ups.
Frequent mistakes include:
Planning a predictable Illinois production typically requires clear expectations for your shoot, plenty of pre-production time, and an experienced production partner to help along the way. Effective planning can optimize your creative outcome while maximizing every dollar you get back through the Illinois film tax credit.
Forge Virtual Studios can connect you with an Illinois film CPA for project-specific guidance. We'll help you handle much of the logistics so you can approach virtual production with a clear mindset.
Interested in learning more about film incentives and virtual production? Get in touch to book a studio tour or discuss your shoot.
Certified green productions in Chicago typically require you to hire a third-party sustainability company to plan and manage environmentally friendly practices across your project. For example, the company may suggest more sustainable catering options or electric generators. The company must meet the DCEO's strict guidelines for third-party service providers. Then, work with the company to submit your application, track records across production, and submit your report after the project is completed.
Under SB 1911, the Illinois film incentive has no annual program caps or per-project caps. However, the 35% base credit for salaries only covers up to $500,000 per worker.
The credit also notably has minimum-spend thresholds based on your film's final runtime. To qualify, films under 30 minutes must spend at least $50,000, and films 30 minutes or over must spend at least $100,000 in-state.