Films, television shows, streaming programs, and commercials are eligible for the credit, while news shows, sports broadcasts, and content produced for internal corporate purposes (such as training videos and industrial films) are not.

Economically Disadvantaged Area Bonus: 15% bump on salaries of individuals (making at least $1,000 in total wages) that live in an economically disadvantaged area (at least 13.8% unemployment).

Rural Area Bonus: a 5% bump on Illinois labor expenditures generated by the employment of Illinois residents for services performed for an accredited production in one or more Illinois counties outside of Cook, DuPage, Kane, Lake, McHenry, and Will Counties 

Relocating TV Bonus: a 5% bump on Illinois production spending for television series relocating to Illinois from another jurisdiction. To qualify, the production must be a television series in which all prior seasons of the series were filmed outside of Illinois

Green Productions Bonus: a 5% bump on Illinois production spending for productions certified as green by the Department of Commerce and Economic Opportunity.

Submit the application 5 business days prior to the beginning of principal photography in Illinois (24 hours for commercials). 

Application must include:
     • Proof of Copyright or Contract.
     • Diversity plan outlining specific goals for hiring minorities and females.
     • Competitive need statement.

*Compensation Cap: $500,000 maximum compensation per resident or nonresident employee. For purposes of calculating Illinois labor expenditures for a television series, the eligible nonresident wage limitations are applied per episode to the entire season.

Nonresident Actor Limitation: For an accredited production with Illinois production spending of:

     • $20,000,000 or less, no more than 4 nonresident actors' wages shall qualify as an Illinois labor expenditure. 
     • Between $20,000,000 and $40,000,000, no more than 5 nonresident actors’ wages shall qualify.
     • $40,000,000 or more, no more than 6 nonresident actors' wages shall qualify.

These limitations do not include reality stars.

Executive Producer Labor Limitation: For productions commencing on or after July 1, 2025, wages paid to no more than 2 executive producers per accredited production may be considered Illinois labor expenditures. Notwithstanding that limitation, if an executive producer receives compensation for another position on the accredited production for services performed, including, but not limited to, writing services, and that compensation is otherwise considered an Illinois labor expenditure under the provisions of this definition, then, subject to the other limitations of this definition, that person's salary or wages may be considered an Illinois labor expenditure, and that person shall not be considered one of the 2 executive producers for the purposes of the limitation. In addition, line producers are not subject to the 2-producer limit.

Above-the-Line Spending Caps: Illinois labor expenditures don’t include:

     • Above-the-line Illinois labor expenditures exceeding 40% of total Illinois production spending (unless the Department approves a waiver).
     • Above-the-line spending paid to related parties exceeding 12% of total Illinois production spending.
     • Below-the-line spending paid to a related party that exceeds fair market value.

In order to comply with the tax credit rules and regulations, production companies must make good-faith efforts to hire Illinois residents that represent the diversity of the State. The Illinois Department of Commerce and Economic Opportunity request that production companies have their Illinois crew complete a diversity form and return it to the production office. 

Expenses that are directly incurred for the production from the final script stage to the end of post-production are eligible for the tax credit. The tax credit can be claimed upon completion of the production but no later than 2 years following the completion of the production. 

This tax credit has a 5-year carry forward. 

For commercials, you need storyboards with application.