A group of Chicago-based independent filmmakers and production companies say the Illinois Film Office is favoring large Hollywood production studios, and the agency’s actions are leading to economic hardship that’s forcing some to consider leaving Illinois.
The accusations come after Gov. JB Pritzker announced in April that film production companies spent $653 million in Illinois is 2024 — the second highest total in state history. The record is $700 million, set in 2022.
Prairie State Production Alliance, made up of 18 independent filmmakers and production companies, sent a letter to Pritzker last month alleging the Film Production Tax Credit program is unfairly forcing indie filmmakers to go through bureaucratic obstacles and interpret unclear rules.
The roadblocks have forced some to decrease their film budgets, leading to fewer jobs. Others have canceled projects while some are now considering moving their productions to other states. The tax credit program was supposed to guard against all those issues, the group said.
“We had smooth sailing but then on a dime, everything changed,” Full Spectrum Features co-founder and co-executive director Eugene Sun Park said. He believes the change began in early 2024. “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, passed in 2008, gives producers a 30% credit on all qualified expenditures, including post-production. It also gives producers an additional 15% tax credit on salaries of individuals who live in economically disadvantaged areas. There’s also no cap on film and television tax credits.
Illinois has dispersed more than $700 million in tax credits through the program, according to the state’s film office.
Chicago-based Full Spectrum Features is a nonprofit that focuses on producing and supporting the work of women, BIPOC, disabled and LGBTQIA+ filmmakers. Its film budgets are usually about $1 million with crews of about 100 people, Sun Park said.
The nonprofit has taken advantage of the program for more than 15 years, but they said the seven-member film office has inundated them with “unreasonable” requests after submitting their tax credit applications and are not told why.
For many of Chicago’s independent filmmakers, who lack the big budgets of Hollywood studios or major TV networks, the tax credit is something they rely on.
In Prairie State’s May 7 letter, the group asked Pritzker for transparent rules and equal application of the guidelines.
Pritzker’s office said in a statement that under his administration “film expenditures in Illinois have skyrocketed to record levels. Small productions represent valued partners in Illinois’ diverse film landscape and play a significant role in driving economic development in the state. The administration has always prioritized industry feedback and it will continue to work with the General Assembly to evaluate potential improvements to the program.”
Peter Hawley, director of the Illinois Film Office, declined comment.
But the Illinois Film Office said in a statement: “Every production is held to the same standard. IFO evaluates all project credit applications equally, regardless of their size or origin, on a first come-first serve basis. IFO is taking steps to streamline the claim process and, at the same time, enhance program transparency. We cannot both streamline the claims process and seek less information from credit applicants; requesting details to support a claim is critical to ensure the program continues to operate with a high degree of integrity and protects the taxpayers’ investment in Illinois film.”
John Bosher, partner at Throughline Films, said he noticed a shift from the IFO early last year and it’s led to an “adversarial effect 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 said.
He said his company had to cut down on the number of projects it makes and slash its film budgets because instead of waiting 90 days for a tax credit approval, it’s taking 22 months. Throughline and its subsidiary Very Merry Entertainment typically have film budgets between $1 million and $2 million and crews of about 150, according to Bosher.
“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 said. “Each of our last three projects has budgets that are less than 50% of its predecessor. That means we’re hiring less people for less days; we’re paying lower wages and we’re generating less economic activity and tax revenue for the state.”
When confronted, Bosher said, the IFO has been pointing to a phrase in the legislation that says to qualify, expenses must be “reasonable in the circumstances,” according to the bill.
“That’s open to interpretation,” Bosher said. “There’s a level of subjectivity in this taxpayer-funded public program that should not exist.”
Bosher said he has been talking to officials from other states and is considering moving productions out of Illinois.
Christine Fitch, a certified public accountant with Film Tax Credits, a third-party company that files tax credit applications for commercial, TV, studio and independent films, has noticed the IFO sending more inquiries on independent films.
“The questions we are getting back from the film office have substantially changed,” Fitch said. “They are significant questions that take a significant amount of time. Unfortunately, I see that more on the independent film side than on either the commercial or studio side.”
Doreena Towner, founder and chief operations partner of Chicago-based Emerging Business Solutions, has filed dozens of tax credit applications for filmmakers in Illinois. Towner said she hasn’t noticed any difference in what the state is asking independent filmmakers compared with what’s being asked of Hollywood firms but said the rules could be more clear.
“The Illinois film credit is one of the best in the country,” she said. “Are there efficiencies that can be implemented? Of course. As an independent CPA, that’s what we’re advocating for, which will in effect do what all of the studios and the independent filmmakers want, get their credits back faster and have clear, concise rules that could be followed.”
Sun Park said the alliance hopes Pritzker takes action, following their letter.
“It’s a pretty modest ask,” he said. “We just want fairness.”