IL HB2870

Creates two categories of film productions for tax credit purposes: Category 1 productions must conduct at least 75% of soundstage filming days at a qualified Illinois production facility and spend at least 20% of total expenditures at such facilities; Category 2 productions are all other accredited productions

Increases the base tax credit rate to 35% of Illinois production spending for productions concluding on or after July 1, 2025, with an additional 3% credit for wages paid to Illinois residents in senior department positions or series regular actors, and 15% for hiring residents from high poverty/unemployment areas

Caps the total credit at 30% of total expenditures for productions exceeding $75,000,000 in spending

Expands the number of nonresident employees whose wages qualify for credits: Category 1 productions can include up to 13 non-actor positions and 4-6 actors depending on budget size; Category 2 productions can include up to 9 non-actor positions and 2-4 actors

Extends the film production tax credit program sunset date from January 1, 2033 to January 1, 2039, and requires production companies to withhold Illinois income tax on payments to loan-out company employees for services performed in Illinois starting July 1, 2025