A new study shows that Illinois’ film production tax credit is drawing production projects to the state and boosting the economy.
The Illinois Production Alliance released its Economic Impact Study of the Illinois Film Production Services Tax Credit which measured the economic impacts of film, television and commercial productions in the state.
IPA Executive Director Christine Dudley said people working on the productions are contributing to the Illinois economy.
“For every dollar spent on the tax credit, seven dollars is generated into the economy, so that is a return on investment and really speaks to the success of the program,” said Dudley to The Center Square.
The tax credit offers a 30% credit for qualified film, television, streaming and ad production in Illinois, with an additional 15% credit available for salaries paid to people who live in economically disadvantaged areas across the state.
The report notes that 93.5% of productions filmed in Illinois reporting that they would not have come to the state were it not for this benefit. Altogether, the industry resulted in $3.6 billion in economic activity between fiscal year 2017 and fiscal 2022, with more than 5,100 full-time equivalent jobs created in 2022.
The report also provides comparative data from the most competitive states with incentive programs, providing observations for the possibility of greater benefits to the state and the industry alike, and presenting the Illinois General Assembly with potential for adjustments that could provide for greater market share.
“Attracting film and television production to the state and supporting it is a win/win for business, labor and government because it creates new jobs and expands economic opportunity for small businesses,” said Jack Lavin, president and CEO of the Chicagoland Chamber of Commerce.