Illinois Breaks Film Revenue Records in 2007

BY Ruth Ratny

Illinois revenues from film production soared to $155 million in 2007—an all time record high for movies, TV shows and commercials, and an 80 percent increase over 2006’s $86 million.

In addition, over 26,500 people were hired in 2007 to work on local films—a 110 percent increase over 2006. With renewal of the tax credit still pending in the Illinois House, Gov. Rod Blagojevich and the Illinois Film Office used the numbers to tout the role of the incentive. The press release on the numbers notes that Illinois had $23 million in revenue in 2003, before the tax credit was enacted. That’s a seven-fold jump in five years.

“The huge increase underscores the importance of the Film Tax Credit, combined with our amazing locations and the best crew in the country,” said IFO director Betsy Steinberg.

The increase also underscores the presence of The Dark Knight, which shot in Chicago all through last summer, dumping millions on the city.

The 2007 gain was the biggest jump in production dollars since the previous record of $125 million in 1998.

But it’s not just about money spent directly on shooting. Film revenues in 2007 had a nearly half-billion dollar impact on the Illinois economy, noted Eileen Willenborg, SAG/AFTRA executive director. The state benefited by $424 million.

“Legislators should recognize the value of the film industry by giving us a multi-year extension, which many competitive states have,” added Willenborg. “Investor and infrastructure tax credits and sweetened credits for scripted TV series—a mother lode of jobs—could be added to sustain our incentives.”

Approval of the 2008 tax credit by the state senate is expected by mid-April at the latest. Then, the bill returns to the house for another vote. The inclusion of talk show eligibility for the tax credit caused the recent delay in passage since the 2007 bill expired Dec. 31, 2007.

During the first quarter of 2008, seven movie projects, whose incentives applications had been filed in 2006, are in progress or have wrapped.

With many applications already on file, “expectations are high,” said Steinberg, of a host of new projects heading to Illinois as soon as they are notified that incentives are greenlighted for another year.

Of the $155 million, Springfield reports $18.6 million came from the production of commercials, comparing favorably with 2006’s estimated $21 million.

“We’ve enjoyed a progressive increase in spots shot here thanks to the tax credit,” said Mark Androw, executive producer of the Story Companies and a past chairman of the national Association of Independent Commercial Producers. The dip in dollars, Androw pointed out, was because many of those spots were moved into new media, which pays less.

“Overall, I know from my company’s point of view we shoot more in Chicago than Toronto. I don’t hear Canada mentioned much anymore,” Androw said.

The Illinois Production Alliance is the sole organization that maintains the services of a professional lobbying firm to represent the film industry to Springfield.

IPA president Sandy Gordon thanked Gov. Blagojevich, Senate President Emil Jones, house speaker Michael Madigan, and incentives bill co-sponsors Sen. Rickey Hendon and Reps. Ken Dunkin and Skip Saviano “for their vision in recognizing the film industry’s tremendous impact on the Illinois economy.”

The Illinois Film Office is located at 100 W. Randolph; phone, 312/814-3600. For Film Tax Credits, see www.illinoisfilm.biz.

Carrie L. Kaufman contributed to this article.