Chicago has long been used as a stand-in for fictional and real-life settings, but the suburb has also become a destination for film and television companies seeking a particular look.
“Illinois is everything but desert,” said Christine Dudley, executive director of the Illinois Production Alliance. “There are buildings, lakes, suburbs, forest reserves, and even farmland. And it all happens within minutes of each other.”
But what makes the suburbs and other parts of the state so attractive are the bargains producers can get by filming in Illinois.
HBO’s “Somebody Somewhere,” starring Bridget Everett and Jeff Hiller, is filmed primarily in the suburbs of Warrenville and Lockport.
Provided by HBO
The state’s Motion Picture Production Tax Credit allows qualifying production companies to receive a 30% transferable tax credit on most production costs and certain salaries. Producers can also receive a 15% increase if they hire workers from “economically disadvantaged areas.” In return, these works create jobs and attract business from outside the area.
A new report commissioned by Mr. Dudley’s group finds that state film incentives are Hollywood’s biggest box office draw. According to a survey of producers included in the report, more than 90 percent of productions filmed in Illinois would not have happened without this incentive.
“Every production company is looking for where the incentives are, and that’s number one,” said Peter Hawley, director of the Illinois Film Office. “And we have something very powerful.”
Many of my recent works make use of it.
Producers of the television series “Fargo” used Elgin and other suburban areas as stand-ins for Kansas City several years ago. Acclaimed director David Fincher transformed downtown St. Charles into upstate New York in his recent Netflix film The Killer. Additionally, portions of Warrenville and Lockport are used in place of Manhattan, Kansas in the HBO series “Somebody, Somewhere.”
Hawley pointed out that in 2022, approximately $700 million worth of film, television and commercial production spending will be eligible for the incentive program, with $207 million in tax credits available.
“One of the first things we ask on the form is why Illinois?” Hawley said. “It’s mostly because of tax credits, because something that costs $1 million now costs $700,000.”
According to the report, Illinois is one of 37 states that offer some type of production incentive. But some critics and researchers, not just in Illinois but nationally, question the value of these tax incentives.
“There are common challenges in measuring the economic value of these types of incentives,” said Austin Berg, vice president of marketing at the Illinois Policy Institute, a conservative think tank that analyzes and tracks government finances. “What economic benefit would there be if he cut taxes by $200 million for all companies, not just one industry?”
A 2022 National Conference of State Legislatures report showed some states are losing money on film production incentive programs.
An analysis of such programs in California, Pennsylvania, and Virginia shows that these states are not achieving the expected results.
“The costs were found to exceed the benefits,” the California Legislative Analyst’s Office wrote. “We came to the conclusion that about a third of the projects that received credits would probably have been done here, regardless of whether they received grants or not.”
But proponents of incentive programs argue that it’s not just what producers get that matters. Dudley said the benefits to the state’s economy go far beyond the cost of making the film.
For every $1 Illinois credits to a work, that work returns $6.81 “directly, indirectly, or induced” into the state’s economy, according to a new report.
“The Bear,” about a chef (Jeremy Allen White, left) who returns to Chicago to run his brother’s sandwich shop, was filmed in the city and features restaurant scenes.
Photo provided by: FX
Induced revenue includes all types of tourism revenue generated by the popularity of movies and television shows. Hulu’s “The Bear” was a blockbuster hit set in Chicago that sparked the city’s gourmet tourism industry.
There are also numerous bus tours throughout Chicago and the suburbs of famous filming locations.
However, NCSL researchers note that “it is difficult to quantify exactly how much film development will benefit state tourism.”
Still, industry insiders believe all the benefits are significant.
“Illinois’ return on investment is among the highest in the nation, but it’s difficult to compare because not all incentive programs are matched,” Dudley said.
In fact, Illinois’ model is different from most other states’ models.
“This is a tax credit, not a rebate, so the money stays in Illinois,” Hawley said. “We don’t just hand over cash when the shoot is over.”
The credits are also transferable, Hawley noted, so they could be sold to other entities that pay state taxes.
The Illinois Producers Alliance report makes recommendations that could ease the burden on producers, including eliminating credit income caps and removing the program’s 2032 termination clause. Hawley believes the state remains well-positioned to compete for new movies. Television and commercial projects will continue into the future.
“We’re expanding,” he said. “We launched an employee training program that was delayed due to COVID-19. We have come a long way.”
