Illinois Production Alliance Releases SPI’s Study of the State’s Tax Credit

An Olsberg•SPI (SPI) study of the economic impact of the Illinois Production Services Tax Credit – the first ever to measure the impacts of film, television and commercials production in the state – has been released by the Illinois Production Alliance.

The study found that the Illinois tax credit has been a key driver of economic activity and jobs and that it has a significant positive impact on attracting productions that would not otherwise have been filmed in the state – with some 93.5% of productions filmed in state reporting that they would not have come to Illinois were it not for the incentive. In terms of economic return on investment, for every dollar the state spent on the tax credit, nearly $7 was generated.

Furthermore, production spend across the state did not only benefit the screen sector – for a mid-budget production some 62.6% of spend flowed to sectors including location fees and real estate, travel and transport, construction, health and medical, and other local labor such as hospitality and catering. Altogether, this resulted in $3.6 billion in economic activity between FY17 - FY22, with more than 5,100 full-time equivalent jobs created in 2022 alone.

The Illinois Film Production Tax Credit offers a 30% credit for qualified film, television, streaming, and commercials production in the state, with an additional 15% credit available for salaries paid to people who live in economically disadvantaged areas across the state.

“Our film economy in Illinois is booming, and that is reflected not only in the demand we see from projects to film here, but in the quality of those productions,” said Illinois Governor JB Pritzker. “The Film Production Services Tax Credit has helped Illinois develop a creative workforce that is second to none in the talent, dedication, and diversity offered, and the robust return on investment from that credit is a tremendous benefit to our entire economy.”

“The film and television industry knows anecdotally how important the Illinois Film Production Services Tax Credit is to bringing productions here and developing our workforce, but to have the benefits analyzed with real data and real results gives us a benchmark for informed policy decisions,” said Illinois Production Alliance Executive Director Christine Dudley. “To see these results detailed like this is enlightening, and especially valuable as we look at how we can make the state even more attractive.”

“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. “This study gives us a better understanding of the return on investment for Illinoisans, and it provides a roadmap on how we can remain competitive and increase our market share to grow this tremendous economic engine for Illinois.”

The report can be downloaded here

Further information on SPI’s impact studies can be found here.

For more information on this study, please contact Leon Forde at leon@o-spi.com