Lights will shine bright at the Toronto International Film Festival this week, showcasing Canada’s significant role in the global film industry. However, as the U.S. discusses implementing a national incentive program to retain film productions within the country, questions arise about how this might impact Canada, known for hosting numerous U.S.-based film sets.
President Donald Trump recently highlighted bipartisan support for a federal tax incentive aimed at keeping film production within the U.S. and preventing it from relocating to Canada and other countries. The proposed legislation, named the Motion Picture, Television, and Entertainment Revitalization Act, has stirred discussions among industry professionals and advocates who have long advocated for such investments.
The U.S. film and television sector in Los Angeles County has witnessed a decline in employment, with a significant drop in shoot days for feature films and TV productions. Despite the perception that Canada attracts a large share of film and TV productions, industry data suggests that while there is an overall decrease in TV production, productions are not solely migrating to Canada but are also finding homes in various American states and the U.K.
According to FilmLA, a notable percentage of U.S.-scripted TV series were filmed in Los Angeles, followed by the U.K., Georgia, and British Columbia. Despite Canada’s popularity as a filming destination, the U.K. surpassed Canadian provinces as a filming jurisdiction for various types of productions in 2024, indicating a diversified landscape for film and TV production.
The historical battle between the U.S., Hollywood labor groups, and Canada over film production locations dates back to the late 1990s and early 2000s. Canada’s implementation of federal tax credits in 1997 to attract foreign productions sparked controversy and protests in Hollywood, leading to calls for countervailing tariffs against U.S. productions filmed in Canada.
While Canada initially stood out with substantial tax incentives, the global landscape has since evolved, with many countries and U.S. states introducing their own incentive programs. Despite the competitive environment, Canada continues to attract major Hollywood productions due to its favorable exchange rate, diverse landscapes, and skilled workforce.
As discussions on U.S. federal incentives unfold, the Canadian film industry remains resilient, with foreign productions generating significant economic contributions and job opportunities. To navigate potential impacts, industry experts emphasize the importance of investing in domestic projects and supporting initiatives like the Online Streaming Act to bolster the Canadian film industry’s growth and sustainability.
