Illinois DOR Updates Withholding Tax Rules for Film Production, Loan-Out Companies

The Illinois Department of Revenue (DOR) has issued an informational bulletin announcing changes to withholding income tax requirements for film production and loan-out companies. Beginning Dec. 12, 2025, Public Act (P.A.) 104-0453 amended the Illinois Income Tax and Film Production Services Tax Credit Act, clarifying that production companies must withhold and remit Illinois income tax on compensation paid to loan-out companies, while loan-out companies are considered the employer of record and must report withholding for their employees, with both entities required to use Form IL-941 for the 2026 tax year. [Il. Dep’t of Revenue, Informational Bulletin FY 2026-16, 02/05/26]

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