THE INCENTIVES PROGRAM - TIP

On February 2, 2023, Governor J. B. Pritzker signed Senate Bill 2951 z which amends The Film Production Services Tax Credit Act for all productions accredited on or after February 3, 2023, as follows:

• Qualifies the first $500,000 of wages paid to each eligible nonresident employed in a qualified position;
  • Limits the number of eligible nonresidents for each production to not more than 9 nonresidents, not including Actors, who are employed in the following qualified positions: Writer, Director, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer, Actor;
  • Allows the following nonresident actors’ wages to qualify as Illinois labor:
    • For productions with Illinois spending of $25 million or less no more than two nonresident actor’s wages shall qualify;
    • For productions with Illinois spending of more than $25 million no more than four nonresident actor’s wages shall qualify; and,
• Extends the sunset date to December 31, 2032.

Senate Bill 153 is currently on the desk of Governor Spencer Cox and if signed would amend the Utah film production incentives program as follows:

• Creates an additional pool of funds for fiscal years (July 1 – June 30) 2023 and 2024 in the amount of $12 million per fiscal year to be used for rural productions only. This funding is in addition to the unrestricted annual funding of $6,793,700; and,
• Further defines a “rural production” to include a state-approved production in which at least 75 percent of the total number of production days occur within a county of the second class that has a national park within or partially within the county’s boundaries.

Senate Bill 91 proposes to create the Kansas Film and Digital Media Production Development Act Program, as follows:

• Establishes a transferable tax credit equal to 30% of qualified expenditures and allows for an additional bump for one of the following:
  • Up to 5 % of the qualified production expenditures for a certified “multi-film” deal (as defined), a certified television series, a “high-impact” production (as defined) or contributions to film-related infrastructure or workforce development in Kansas; or
  • Up to 5% of qualified production expenditures if 50 percent or more of the crew or above-the-line personnel are Kansas residents;
• Establishes a transferable tax credit equal to 30% of qualified postproduction expenses for a certified project with no qualified production expenses;
• Allows up to an additional 5% of the amount of the qualified production expenditures or qualified postproduction expenditures of a production company that has previously received an income tax credit under this act;
• Limits the cumulative amount of tax credits that may be awarded to a single project to 40% of total qualified production expenditures or postproduction expenditures;
• Qualifies labor costs as follows:
  • Resident and nonresident below-the-line labor costs;
  • Resident above-the-line;
  • Limits the total tax credits that may be earned for each nonresident above-the-line individual, as defined, to not more than $500,000 in each taxable year;
  • Limits all above-the-line labor costs to a maximum of 25% of total production expenditures;
• Requirements:
  • At least 10 percent of the crew must be residents of Kansas;
  • For a television series with multiple episodes:
    • Film at least 25 % of the series season within Kansas and incur a minimum of $50,000 in eligible expenses;
  • Submit a report by a certified public accountant licensed to practice in Kansas;
• Allows up to $10 million per year to be awarded; and,
• Establishes a sunset date of December 31, 2032.