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1 Illinois Film Production Services Tax Credit Annual Report Types Of Illinois Film Production Services Tax Credit Annual Report FY2017 July 1, 2016 – June 30, 2017 When a production company is ready to claim their credit, they engage an Illinois licensed independent Certified Public Accountant who submits a report attesting to the qualified expenses including exact numbers of Illinois residents hired, and vendors used. However, the Film Tax Credit rule provides qualified productions up to two years from the completion of the project to claim a tax credit. Therefore, the figures reported may be for projects dating back to 2012. Beginning in FY2015 Q1, reporting methodology was changed from using spending estimates provided upon application to actual expenditures reported when the credit is claimed. However, we continue to report estimates for performance metrics. Estimates, while less precise, are timelier. Furthermore, projects awarded tax credits during this period may have been previously counted using the prior methodology. Amount of film production spending in Illinois and number of job hires: Production Credits TOTAL Qualified Qualified IL Qualified IL Crew Talent Hires** FY17 Actual Office issued Expenses* Wages* Vendor Expenses* Hires** *** Hires** Commercial 183 46,919,486.91 24,743,109.61 21,869,359.05 717 6,115 607 TV 100 128,375,668.06 76,959,229.73 51,386,683.35 732 2,508 794 Film 14 17,666,792.58 10,180,795.93 7,485,996.65 55 1,249 140 TOTAL 297 $ 192,961,947.55 $ 111,883,135.27 $ 80,742,039.05 1,504 9,872 1,541 *Actual expenditures reported are measured from the date of issuance of the tax credit. Costs may have been incurred/paid in prior periods. ** Job hires represent a count of Illinois residents hired on productions and do not reflect unique individuals. Some residents may have worked on more than one project. *** There were 5,581 “Extras” reported on these projects; however they are not included in Talent Job Hires for the sake of conservatism. Types of vendors hired, depending on production needs, include but are not limited to caterers, janitorial service companies, security companies, lumber yards, hardware stores, fabric stores, clothing companies, grocery stores, gasoline stations, hotels, restaurants, parking garages, office rentals, stage rentals, computer rentals, insurance companies and legal services. • We are unable to track vendor related jobs. Any given project will use hundreds of vendors and we do not track how many employees of a particular vendor work on each project. • In the 2017 Legislative Session, the General Assembly, in coordination with the Department, introduced House Amendment #1 to SB 1461 (Holmes/Kifowit/Turner), which seeks to help the Department comply with the statutory mandate that requires the Department to report the number of minority-owned vendor firms contracting with qualified Film Tax Credit recipients. Specifically, the legislation sets reasonable thresholds on vendor reporting. Additionally, it seeks to resolve the conflicts between the statutory reporting provisions that the Department make public proprietary and confidential information regarding vendor costs utilized by productions and prohibition of 1 such information from disclosure within the same Act. As amended by House Amendment #1, SB 1461 passed both Chambers, but was not concurred upon by the Senate. The Department plans to work with the General Assembly to introduce similar legislation in 2018 Legislative Session. The attached report listing vendors utilized by the tax credit recipients aligns with the proposed statutory changes described above, whereby the report lists vendors paid at least $10,000 or 10% of the accredited production’s spending, whichever is less. Whether or not the human infrastructure reflects diversity of the state of Illinois: • The film tax credit statute contains a diversity reporting requirement which means that no production will receive the tax credit without proof of a best faith effort to hire women and minorities as part of the technical crew and office staff. FY17 Annual Crew # % White Males 4,831 49% White Females 1,955 20% African American 1,068 11% Hispanic 1,145 12% Asian 516 5% Native American 90 1% Other 258 3% Total 9,863 * Non White 29% White Females 20% Protected Class 48% *Does not include police hires • In order to promote racial diversity in the film industry in the state of Illinois, the Illinois Film Office continues to encourage educational opportunities for minorities to be trained for working in film and television. Illinois is the only state with a film production tax credit program with such a requirement. The Illinois Film Office provides support to a wide range of not for profit programs such as Free Spirit Media, Independent Film Project- Chicago, Midwest Independent Film Festival Summer student program, all of whom provide training programs for minority, women and underserved communities. In addition, DCEO has previously provided grant funding to IATSE Studio Mechanics Union (Local 476.) specifically for this purpose. The FILM office has worked with, and met with our stakeholders to enhance awareness amongst labor trade unions, legislators, community leaders, and companies across the film industry to educate and inform about ways to succeed with a diverse workforce. Overall crew and production office staff racial diversity was at 29% in FY 2017 up from 14% when the program was established. 2 Illinois Film Tax Credit Program Vendors Providing Goods and Services to Tax Credit Recipients (FY17) for vendors paid $10,000 or 10% of the accredited production's spending, whichever is less Vendor Name Total Amount WMAQ $12,257,689.50 CINESPACE CHICAGO FILM STUDIOS $3,518,980.67 DEEP DISH PRODUCTIONS OF CHICAGO $2,363,687.70 KESLOW CAMERA $1,882,283.41 MARIO'S CATERING LLC $1,510,364.60 Essanay $1,205,000.56 Palm Havas $1,168,146.20 PREMIER LUXURY SUITES $1,150,769.68 ONE at Optimus $1,146,174.04 THE MILL $1,085,157.61 Optimus $1,071,116.32 SJB RENTALS INC $1,060,549.00 A BETTER MACHINE $1,020,064.50 Aun Point Security $809,807.25 McGarryBowen, LLC $800,666.05 QURIOSITY PRODUCTIONS $731,980.08 LEGAT/WALTRAUD $681,588.88 Vitamin Pictures $640,316.57 SC FUELS $504,773.25 CHICAGOLAND TRUCK RENTAL $438,428.36 CINELEASE, INC. $436,909.77 TOTEM LUMBER & SUPPLY $429,130.02 Whitehouse Post Production, LLC $420,639.17 Ace Rent A Car, Inc $399,708.50 Windy City Limos $384,902.84 Comma $372,251.75 UNITED HEALTHCARE INSURANCE $371,030.82 INTELLIGENT LIGHTING CREATIONS $362,033.58 Hertz $357,343.07 HONEST FOODS $314,620.57 Schumacher Camera $302,804.00 GOLAN PRODUCTIONS, INC $296,888.03 Cineverse $295,394.26 H & M RENTALS $288,169.88 TRIO VIDEO $276,445.00 LEAVENS, STRAND, GLOVER & ADLER LLC $273,909.36 Purple Haze Production Services, LLC $261,037.50 MCCASTER AND ASSOCIATES SECURITY SERVICES LLC $254,730.88 Schawk $254,670.45 Big City Inc $253,968.75 KARTEMQUIN EDUCATIONAL FILMS ‐ OPERATING $252,506.11 Havas Worldwide Chicago $252,468.11 MIDWEST RENTALS INC $252,317.00 City of Chicago $248,494.73 1 of 19 Illinois Film Tax Credit Program Vendors Providing Goods and Services to Tax Credit Recipients (FY17) for vendors paid $10,000 or 10% of the accredited production's spending, whichever is less Vendor Name Total Amount CHICAGO PORTABLE POWER $247,115.55 VIDEO EQUIPMENT RENTALS $240,196.12 PASKAL & RUDNICKE CASTING INC $238,284.10 Standard Parking $233,254.00 The James Hotel Chicago $232,359.69 RITZ CARLTON $226,702.19 ILLINOIS RAILWAY MUSEUM INC $225,361.15 Chicago Transit Authority $220,478.24 HAT TRICK CATERING LLC $208,790.23 MCMASTER‐CARR $207,266.64 DDB Chicago Inc. $203,954.80 PUBLIC CHICAGO $195,923.99 PANAVISION REMOTE SYSTEMS $193,182.08 A to B Rentals, Inc. $186,938.91 O'CONNER CASTING $184,298.13 T & P ASSETS LTD $183,721.60 WONDERLOVE INC $180,000.00 Payless Car Rental $174,590.46 PICTURE SUPPORT SERVICES $169,218.88 KOMNENICH FILMS INC $167,597.38 ATOMIC IMAGING $164,549.97 CHICAGO STUDIO CITY REAL ESTATE HOLDINGS LLC $162,288.67 HYATT CHICAGO MAGNIFICENT MILE $159,220.82 SUNBELT RENTALS INC $155,451.13 FILM GEAR, INC. $152,663.48 MEDIA PROCESS GROUP $151,044.30 Dearborn Plaza $150,964.30 ANIMAL TALENT OF CHICAGO, INC. $149,536.90 Creative HD $145,070.92 CHICAGO SERVICE GROUP $143,390.00 WINDY CITY MUSIC $133,122.12 LOTTIES LAND LLC $131,300.00 Tim Turner Photography $130,339.14 Veto Viewpoint $130,027.73 FLEET SERVICE INC $129,313.75 BAM Studios $128,923.75 Rumor Films LLC $128,855.00 Chicago Scenic Studios $127,532.55 STERLING PARK DEVELOPMENT LLC $122,490.00 2nd Cine, Inc. $122,037.65 EMERGING BUSINESS SOLUTIONS $120,000.00 Claire Simon Casting, Inc $117,263.78 Suite Home Chicago, Inc $116,349.88 Gig Rig $112,369.80 2 of 19 Illinois Film Tax Credit Program Vendors Providing Goods and Services to Tax Credit Recipients (FY17) for vendors paid $10,000 or 10% of the accredited production's spending, whichever is less Vendor Name Total Amount JOHN OLSEN PRODUCTIONS, INC $112,307.08 HONEY POOH INC $112,020.00 Simflex Services $111,524.49 Chicago Athletic Assoc $110,836.19 The Coloring Room $108,183.37 INDECOR GROUP INC $106,843.85 CAP GUN COLLECTIVE $106,630.74 RML SPECIALTY HOSPITAL $105,500.00 JACQUELINE VIDMAR $105,374.25 HARKER DRIVE PARTNERSHIP $104,765.10 Periscope Post & Audio LLC $104,675.00 AREA TOWING INC $103,850.00 BRIDGESTREET GLOBAL HOSPITALITY $101,603.34 MOTIONCAM SERVICES, INC. $101,600.00 Laubinger & Associates, LLC $99,450.00 ORSOLINI WELDING & FAB INC $99,390.00 Ogilvy & Mather $97,273.66 SERVICE SANITATION $96,820.00 SECURITAS SECURITY SERVICE $94,533.38 CARDLOCK FUELS SYSTEM, INC/SC FUELS $94,420.46
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