IL HB1892

Creates a new income tax credit for interactive digital media companies (video games, computer games, simulations, animations, internet/wireless productions) that produce certified projects in Illinois with at least $100,000 in annual Illinois production spending

Credit equals 30% of Illinois production spending plus 30% of Illinois labor expenditures, with an additional 15% bonus for employing residents from high-poverty/high-unemployment areas or honorably discharged veterans

Illinois labor expenditures are capped at $150,000 per employee, and compensation included in production spending is capped at $100,000 per employee; wages must be paid to Illinois residents for services performed in Illinois

Credits are available for tax years beginning January 1, 2026 through December 31, 2035; unused credits may be carried forward for 5 years but cannot be carried back or reduce tax liability below zero

Credits may be transferred to other taxpayers with Department of Commerce and Economic Opportunity approval, with limits of one transfer per tax year to up to 4 transferees; the entire Act repeals on January 1, 2041