IL SB1897

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 tax credits for productions concluding on or after July 1, 2025: Category 1 productions receive 35% credit on Illinois labor and vendor spending plus additional credits for hiring Illinois residents in senior positions; Category 2 productions receive 35% credit on Illinois resident labor and 30% on vendor spending

Expands the number of nonresident employees whose wages qualify for credits: Category 1 productions may include up to 13 non-actor nonresidents and 4-6 nonresident actors (based on production spending level); Category 2 productions may include up to 9 non-actor nonresidents and 2-4 nonresident actors

Caps total credits at 30% of total expenditures for productions exceeding $75 million in spending

Extends the sunset date for the film production tax credit program 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