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"Over the past three years, we have shown Hollywood that Illinois
has everything a production needs -- great cities, great locations,
and great actors and crews," Blagojevich said. Our film tax credit
has helped bring new productions to our state, which have pumped
millions of dollars into our economy and put thousands of talented
people to work. With this new bill, we can do even more to attract
the industry to Illinois and create more jobs."
In 2003, before the legislation took effect, film production in
Illinois had declined to approximately $26 million as studios looked
for less expensive locations. This meant that thousands of
Illinois-based cast and crew members were largely without work
within their professions.
The film tax credit passed by the General Assembly and signed by
the governor turned these fortunes around over the last two years by
making Illinois productions even more attractive. By 2004,
productions generated an estimated $77 million and led to
approximately 14,000 people being hired by the industry. In 2005,
production revenue increased to an estimated $94 million, which led
to approximately 15,000 people being hired by film and television
projects. But this business has become even more competitive over
the past several years, which is why the governor supported and
signed the new legislation that will continue the flow of film and
television projects into Illinois.
The primary change in the tax credit is to make it a 20 percent
credit on total Illinois production spending, rather than on
Illinois film production wages. Illinois production spending would
be defined as all salary and expense costs associated with
production activities taking place within the state. This can
include salaries, spending with local vendors and lodging. Labor
costs incorporated into Illinois production spending would be capped
at $100,000 per individual. Expenses tied to activities taking place
outside Illinois or related to travel into or out of the state --
such as airline tickets -- would not be covered.
"This legislation will provide greater exposure to not just the
city of Chicago, but for all of Illinois," said Hendon, one of the
Senate sponsors. "Senate Bill 2030 ensures that when a movie is set
in Chicago, it is financially possible for a studio to film in
Chicago."
"Film and television productions bring a lot more than just
famous Hollywood stars to Illinois," said Colvin, a House sponsor of
the legislation. "This critical industry helps put thousands of
people to work and generates millions of dollars for our economy.
This expanded tax credit will attract even more first-class
productions to Illinois."
"Part of my commitment to being elected a legislator was to help
bring jobs to the state of Illinois," said Dunkin, another sponsor
in the House. "During these challenging fiscal times, we must
continue to take advantage of all of our assets that promote
economic growth. Illinois has proven that we have what it takes to
compete for all kinds of movie and television productions, but
Governor Blagojevich and I know that we must tailor our financial
support to meet the changing needs of this important industry."
To qualify, minimum Illinois film and television production
spending would have to be greater than $100,000, and minimum
Illinois commercial production spending would have to be greater
than $50,000. The legislation also continues encouraging the hiring
of Illinois residents from economically disadvantaged areas.
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 The current Illinois film production tax credit provides a 25
percent tax credit on wages paid by a production company to each
employee who is an Illinois resident. The credit is limited to the
first $25,000 in wages.
"This new legislation will be another important boost for
Illinois film and television production, which translates into
thousands of jobs for cast, crew members, back-office staff and
other workers connected to our industry," said Eileen Willenborg,
Illinois Production Alliance president and AFTRA/SAG-Chicago
executive director. "We salute and appreciate Governor Blagojevich's
strong leadership, and we will continue the partnerships that have
been so successful over the last several years."
Over the past year, a cross section of Hollywood studios have
delivered the production and filming of tomorrow's big-screen hits
to the state, including "The Lake House," "The Break-Up" and
"Stranger than Fiction." Already, the critically acclaimed
television series "Prison Break," the state's first dramatic
television series in six years, has captivated audiences nationwide.
Productions in 2005 included "Prison Break," from FOX Television;
"The Lake House," from Warner Bros.; "Stranger Than Fiction," from
Mandate Pictures; "The Break-Up," from Universal Pictures; "Drunk
Boat," from Magnificent Mile Productions; and "You Are Going to
Prison," from Prison Pictures. Theater marquees have also been lit
up with a variety of other recent movies filmed in Illinois,
including "The Weather Man," "Ice Harvest," "Ocean's 12," "Batman
Begins," "Derailed" and "Roll Bounce."
Already in 2006, there are eight film and television productions
that have filmed, are currently filming or are slated to film in
Illinois. Productions include the independent films "Grace is Gone,"
starring John Cusack, and "Butterfly on a Wheel," with Pierce
Brosnan; along with "Enemies," a Touchstone Pictures television
pilot; "Prison Break," from FOX Television; "Judge Mathis" and "ER,"
from Warner Bros.; and "Design on a Dime" and "Design to Sell," from
HGTV.
"Film and television production helps spur economic development
and job creation in Illinois, and Governor Blagojevich knows that we
must keep this industry strong to continue hearing ‘lights, cameras
and action' in our state. These three simple but important words put
thousands of people to work both in front of the camera and behind
the scenes," said Jack Lavin, director of the Illinois Department of
Commerce and Economic Opportunity. "We needed this new legislation
to continue making this a reality."
"Governor Blagojevich has been clear in his directive that we
need to reach out to Hollywood studios and bring more business back
to Illinois," said Brenda Sexton, managing director of the Illinois
Film Office. "We've had great success over the past two years, but
there is much more potential for growth as studios see the
incredible results of films produced in our state. This enhanced tax
credit is a critical step in the right direction."
[News release]
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