A group of independent filmmakers and production companies based in Chicago are expressing concerns that the Illinois Film Office is prioritizing large Hollywood studios over local indie projects. They argue that the agency’s actions are imposing financial strain on independent filmmakers, driving some to contemplate relocating their productions outside of Illinois.
These claims emerge in the wake of Governor JB Pritzker’s announcement in April, which stated that film production expenditures in Illinois reached $653 million in 2024, marking the second highest total in state history. The previous record of $700 million was set in 2022.
Representatives from the Prairie State Production Alliance, comprised of 18 independent filmmakers and production companies, addressed Pritzker in a letter sent last month. The letter asserts that the Film Production Tax Credit program is creating significant bureaucratic hurdles for indie filmmakers, often based on ambiguous guidelines.
These challenges have led some filmmakers to reduce their project budgets, which has resulted in fewer job opportunities. Others have chosen to cancel projects altogether, while some are seriously weighing the option to move their productions out of the state, a reversal from the intended support promised by the tax credit program.
Eugene Sun Park, co-founder and co-executive director of Full Spectrum Features, characterized the situation as a drastic turning point in early 2024. “We had smooth sailing but then on a dime, everything changed,” he said. “We’re not NBC or Universal. We don’t have deep pockets. So we depend heavily on the tax credit financing both to fund our movies and our general operations. It’s literally a fight for survival at this point.”
The Film Production Tax Credit, enacted in 2008, offers producers a 30% credit on all qualified expenditures, which includes post-production costs. Additionally, it provides a 15% tax credit on the salaries of individuals residing in economically disadvantaged areas, with no cap on the total film and television tax credits available.
According to the Illinois Film Office, more than $700 million in tax credits have been allocated through the program to date. Full Spectrum Features, which focuses on producing and supporting marginalized voices in filmmaking, typically operates with budgets around $1 million and employs approximately 100 crew members.
Despite benefiting from the credit program for over 15 years, Sun Park noted that the film office has been inundating his organization with seemingly unreasonable requests following the submission of tax credit applications, often without explanation.
For many independent filmmakers in Chicago, who do not have the financial backing of major studios, the tax credit is a crucial lifeline. In their letter dated May 7, Prairie State Production Alliance called upon Governor Pritzker to ensure clearer, more equitable guidelines.
In response, Pritzker’s office issued a statement highlighting that film expenditures in Illinois have reached unprecedented levels during his administration. They acknowledged the importance of small productions as valuable partners in the state’s diverse film ecosystem, asserting the administration’s commitment to industry feedback and the intention to explore enhancements to the program in collaboration with the General Assembly.
The Illinois Film Office, represented by Director Peter Hawley who opted not to comment, maintained that every production is evaluated uniformly. In their statement, they emphasized, “IFO evaluates all project credit applications equally, regardless of their size or origin, on a first come-first serve basis.”
The office also indicated that efforts are underway to make the claims process more efficient while improving transparency. They asserted the necessity of detailed information from applicants to safeguard the integrity of the program and protect taxpayer investments in Illinois film.
John Bosher, a partner at Throughline Films, expressed concerns regarding the changes at the IFO that he observed beginning early last year, describing them as fostering an adversarial climate with local producers. “I’m not sure why that is, but it’s definitely rattled our faith in the program and the state as a consistent locale,” Bosher lamented.
He shared that his company was compelled to scale back on the number of projects and reduce film budgets due to delays in tax credit approvals that have stretched from a standard 90 days to an exhausting 22 months. Throughline’s typical production budgets range from $1 million to $2 million, supporting crews of around 150.
“Our investors are wary over whether or not the estimated tax credit value is going to materialize or if the IFO is going to arbitrarily slash its value for reasons that they refuse to explain to us,” Bosher shared, highlighting the impact of uncertainty on their financial strategies.
Consequently, he noted that each of their last three projects has been executed with budgets that are less than 50% of what they had initially envisioned, which leads to decreased hiring, lower wages, and diminished economic activity and tax revenue for the state.
In discussions with the IFO, Bosher mentioned that they often cite a phrase in the tax legislation indicating that to qualify, expenses must be “reasonable in the circumstances.” He criticized this requirement as subjective and open to interpretation, leading to confusion and frustration for independent filmmakers.
Considering the challenges posed by the Illinois Film Office, Bosher stated that he has been in talks with officials from other states and is contemplating the option of relocating their film productions outside of Illinois.
Christine Fitch, a certified public accountant working with Film Tax Credits, has observed a notable increase in inquiries from the IFO regarding independent film projects. “The questions we are getting back from the film office have substantially changed,” she noted. “They are significant questions that take a significant amount of time.”
Fitch commented that she has seen a particular increase in scrutiny directed at independent films compared to commercial or studio productions.
Doreena Towner, founder and chief operations partner of Emerging Business Solutions in Chicago, has submitted numerous tax credit applications for filmmakers in Illinois. While she noted that she hadn’t observed any disparities in the information requested from independent filmmakers as opposed to Hollywood firms, she did emphasize the need for greater clarity in the rules.
Towner praised the Illinois film credit as one of the best in the nation, while advocating for efficiencies that could be implemented to expedite the process. She believes that clear, concise rules would benefit everyone involved, aiding both studios and independent filmmakers alike in securing faster access to their credits.
In conclusion, Sun Park voiced the alliance’s hope that Pritzker will address the issues raised in their correspondence, stating, “It’s a pretty modest ask. We just want fairness.”
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