IL HB4847

Creates the Interactive Digital Media Tax Credit Act providing a 30% income tax credit for interactive digital media companies on Illinois production spending for accredited productions commencing on or after January 1, 2025.

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

Limits individual employee compensation eligible for the credit to $100,000 per employee and requires expenses to be incurred on or after January 1, 2023, for production stages, paid to Illinois residents for services rendered in Illinois.

Allows applicants to claim the credit beginning in the taxable year the investment requirement is met and permits transfer of unused credits within 5 years of award, with one-time transfer limits of 1 transferee for credits applied against taxes remitted or up to 4 transferees for credits applied against taxes due.

Permits excess credits to be carried forward for up to 5 taxable years following the year of excess, with earlier credits applied first, and adds Section 241 to the Illinois Income Tax Act to implement the credit.