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.

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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.

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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.

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