Illinois Film Production Tax Withholding Changes
Summary
The Illinois Department of Revenue has issued a notice regarding changes to withholding income tax for film production and loan-out companies, effective December 12, 2025. Public Act 104-0453 clarifies responsibilities for paying and reporting Illinois income tax withheld from compensation for services performed in the state.
What changed
The Illinois Department of Revenue (IDOR) has issued a notice (FY 2026-16) detailing changes to withholding income tax requirements for film production companies and loan-out companies. These changes, stemming from Public Act 104-0453 and effective on or after December 12, 2025, clarify the responsibilities of both production companies (or their payroll services) and loan-out companies regarding the payment and reporting of Illinois income tax withheld from compensation for services rendered within Illinois.
Regulated entities, specifically film production companies and loan-out companies operating in Illinois, should review Informational Bulletin FY 2026-16 for specific details on their updated obligations. Compliance with these clarified withholding and reporting requirements is necessary to avoid potential penalties or issues with tax filings. The notice itself does not specify a compliance deadline beyond the effective date of the Public Act.
What to do next
- Review Informational Bulletin FY 2026-16 for detailed changes to withholding tax responsibilities.
- Ensure payroll services and loan-out companies are updated on new payment and reporting requirements for Illinois income tax.
- Update internal processes to reflect the clarified responsibilities effective December 12, 2025.
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FY 2026-16, Changes to Withholding Income Tax for Film Production and Loan-Out Companies
News – Thursday, February 5, 2026 print Email Beginning on or after December 12, 2025, Public Act (P.A.) 104-0453 amends the Illinois Income Tax and Film Production Services Tax Credit Act. The amendment clarifies the responsibilities of production companies (or their payroll service) and loan-out companies to pay and report Illinois income tax withheld from compensation for services performed in Illinois.
See Informational Bulletin FY 2026-16 Changes to Withholding Income Tax for Film Production and Loan-Out Companies for more information.
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