Iowa and Illinois have created incentives for film production within their states. While the incentives vary widley, qualified productins are eligible for film tax credits in Iowa and Illinois. Iowa provides both Iowa Film Tax Credits for producers and investors in a film production as well as exemptions from tax for wages earned in the state. Incentives help create and foster a positive business climate that entices on location filming within the states.
In general, film tax credits relieve taxpayers of the obligation to pay all or part of a tax liability. Typically, state film tax credits are applied toward the individual or corporate tax liability. In states where tax credits are transferable such as in Iowa, these credits may be sold to individuals who have a state tax liability.