HB0374 - Interactive Digital Media Tax Credit Act

• Creates a tax credit for interactive digital media companies producing computer games, video games, simulations, animations, or Internet/wireless content in Illinois, effective for productions beginning January 1, 2016.

• Provides a credit equal to 30% of approved Illinois labor expenditures and Illinois production spending, plus an additional 5% if the company operates in a high-poverty or high-unemployment area.

• Limits labor expenditure credits to the first $100,000 per employee and caps vendor employee compensation at $100,000 per employee; requires spending to exceed a baseline amount calculated from 2013-2015 averages.

• Allows credit transfers to up to 4 transferees (or 1 if taxes are remitted), with unused credits expiring 5 years after award; excess credits can be carried forward for up to 5 years.

• Requires the Department of Commerce and Economic Opportunity to report on program economic and revenue impacts by July 1, 2020, and repeals the entire Act on July 1, 2021.