After four months of concern over how future film business would be affected by the suspension of the Illinois Filmmakers Tax Credits — a consequence of the state’s on-going budget impasse — the Governor’s Office last night officially announced that film tax incentives remain viable and applications are welcome.
“I am tremendously relieved and appreciative, as I’m sure we all are, that Gov. Rauner has reinstated tax credit approvals, while at the same time implementing sweeping reforms to other business incentives,” said Wayne Kubacki, VP/Illinois Production Alliance and partner in Essanay Studio & Lighting.
“It’s a testament to the effectiveness of the film credit that the governor included it in his revamp of what constitutes good economic policy for the people of Illinois.”
Although the film tax incentives are still around, there is a caveat, however. “Film tax credits for new projects will still not be certified or able to be claimed until an FY16 budget is enacted,” the Governor’s Office stated.
“These changes will allow the Administration to better recruit new investment to Illinois without impacting the budget.”
Since the start of the new fiscal year in July, when the incentives were suspended, one of the fears was the state would lose production of TV pilots, which are being greenlit in record numbers, as they would be heading for the greener pastures of incentivized states.
Now Paramount Studios might be convinced to consider Chicago again as the location for the next “Transformers” franchise installment. Earlier, the studio said it had considered shooting in Chicago and/or Detroit’s blighted areas. But without incentives from either state, the studio would be looking for blight elsewhere.
“We are delighted the governor has decided to unfreeze the tax credit applications,” said STORY EP Mark Androw, president of the AICP/Midwest, whose recent survey showed that Chicago in 2014 had income of $143 million from commercial production.
“This incentive has been a vital tool in creating and retaining many production jobs in Illinois as well as creating many new opportunities for minorities in our film crews.
“The robust growth of the production community shall continue thanks to this, the most commercial friendly tax incentive in the country.”
