IL SB3528

Creates the Interactive Digital Media Tax Credit Act, providing a 30% income tax credit for interactive digital media companies on eligible Illinois production spending for accredited productions commencing January 1, 2013 or later.

Defines "accredited production" as interactive digital media projects (computer games, video games, simulations, animations, or internet/wireless distribution content) with Illinois production spending exceeding $100,000 per year, certified by the Department of Commerce and Economic Opportunity.

Limits "Illinois labor expenditure" credits to $100,000 per employee and requires wages be paid to Illinois residents for services performed in Illinois on production stages of the project, with expenses incurred on or after January 1, 2011.

Allows taxpayers to begin claiming the credit in the taxable year the company meets investment requirements and permits transfer of unused credits within 5 years of award; transferees can claim the credit but cannot further transfer it.

Permits excess credits to be carried forward and applied to tax liability for the 5 following taxable years, with credits applied to the earliest year with available liability.