Understanding Chain of Title and EIN for the Illinois Film Tax Credit
To qualify for the Illinois Film Production Tax Credit, you need to establish clear ownership of the intellectual property (IP) and produced content. This ensures you hold either the right to produce or the right to distribute the project—both of which are recognized for tax credit purposes. Even if you are commissioned to produce a commercial, you can structure the project so your entity qualifies in Illinois.
What is an EIN?
An Employer Identification Number (EIN) is a unique identifier for your production entity, essentially your business’s “social security number.” It is used to link your company to taxes, banking, and legal documents, including your tax credit application.
Chain of Title Explained
The Chain of Title connects your EIN to your business name, and from there to the copyright on the IP. If your entity has undergone a name change or is operating under a DBA, additional steps may be required to document the full chain. If you do not own the underlying IP (storyboards, screenplay, or other content), you must provide an affidavit confirming you have the right to create and produce it.
Professional Guidance Recommended
This compliance process can be complex, and missteps can jeopardize eligibility. Contacting a tax credit professional ensures your EIN, chain of title, and IP rights are properly documented and that your production can maximize the available credit.
Key Takeaways
- Clear ownership of IP is required to qualify for the Illinois Film Production Tax Credit.
- Your EIN links your production entity to the chain of title and copyright.
- A name change or DBA may require additional documentation to maintain compliance.
- If you do not own the IP outright, an affidavit confirming production rights is necessary.
- Consulting a tax credit professional helps avoid errors and secures eligibility.