Bill
HB 5065
Extends and reallocates Illinois live theater tax credits, expanding eligibility to pre-Broadway, long-run, touring, and non-profit productions while extending the program to 2039
HB5065 Summary – Illinois 104th General Assembly
Bill: HB5065 (Introduced Feb 10, 2026) Jurisdiction: Illinois
Title: Film/Live Theater Tax Credit Provisions (Live Theater Production Tax Credit Act)
Sponsor: Rep. Curtis J. Tarver II (Co-sponsor)
Purpose and intent
- Extend and modify Illinois live theater tax incentives, with added conformity to Broadway-related milestones and expanded credit eligibility, while preserving a structured funding cap and distributing credits among different types of theater productions.
- Extend the sunset for the live theater production credit and update eligibility criteria to reflect evolving industry practices, including inclusion of pre-Broadway, long-run, commercial Broadway touring shows, and non-profit productions.
Key provisions and changes
1) Broadway timing requirement for pre-Broadway productions
- A pre-Broadway production must have a presentation scheduled for Broadway’s Theater District in New York City no later than 18 months after its Illinois presentation (previous language required a goal, not a deadline).
2) Credit funding mechanics (long-run and pre-Broadway)
- If in any state fiscal year the credits awarded for long-run and pre-Broadway productions total less than $2,000,000, the difference between $2,000,000 and the awarded amount may be added to the $2,000,000 allocated for commercial Broadway touring shows in that year. This provides a potential shift of unused credits toward touring shows.
3) Sunset extension
- Extends the sunset of the Live Theater Production Tax Credit Act to January 1, 2039 (previous sunset was January 1, 2027).
4) Definitions and eligibility (Section 10-10 updates)
- Accredited theater production: expands to include, in certain years, commercial Broadway touring shows and non-profit theater productions (as of July 1, 2024 and July 1, 2022 respectively).
- Commercial Broadway touring show: defined by multi-market North American performing footprint within 12 months of Illinois presentation and minimum Illinois production spending ($100,000).
- Pre-Broadway production: must aim for a Broadway presentation within 18 months post-Illinois presentation; minimum Illinois spending of $100,000.
- Long-run production: more than 8 weeks with at least 6 performances/week, including cross-year activity.
- Non-profit theater production: defined by duration (at least 75 minutes), Illinois-registered 501(c)(3) status, and minimum operating budgets and Illinois expenditures.
- Production facility and applicant definitions updated to ensure flexibility for multiple facilities while permitting separate credit awards for different facilities.
5) Credit awards and administration (Section 10-20)
- Annual credit cap structure:
- Up to $2,000,000 for long-run and pre-Broadway productions combined (in applicable fiscal years after 2025).
- Up to $2,000,000 for commercial Broadway touring shows.
- Up to $2,000,000 for non-profit theater productions (with a detailed allocation framework by operating budget tiers).
- Overall cap starting in fiscal years after 2025: up to $6,000,000 total per State fiscal year, subject to the sub-cap allocations.
- Allocation rules: first-come, first-served; if requests exceed the cap, excess carries to the next year; credits cannot reduce tax liability below zero.
- Non-profit credits tiered by operating budget, with explicit annual aggregate caps per budget category.
Effective date
- Effective upon becoming law.
Impact and considerations
- Expands eligible activities, potentially increasing total credits and encouraging broader investment in Illinois theater.
- Ties pre-Broadway timing to a concrete deadline, aligning with Broadway prospects.
- Maintains safeguards on cap distribution to ensure broader participation and predictable state revenue planning.
- Businesses, non-profits, and venues with Illinois productions could benefit from predictable credit availability and extended program life through 2039.
Compiled from official sources — confirm details with the bill’s official record.
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