Lights will illuminate the Toronto International Film Festival this week, showcasing Canada’s prominent position in the global film sector. However, the U.S. is contemplating a national incentive program to retain film productions within its borders, potentially altering Canada’s film industry landscape as it hosts numerous U.S.-based film sets.
President Donald Trump recently mentioned bipartisan support for establishing a federal tax incentive to keep film production in the U.S. and prevent it from relocating to Canada and other countries. This move has stirred discussions among U.S. film professionals and advocates who have long advocated for such investments.
The proposed legislation, labeled the Motion Picture, Television, and Entertainment Revitalization Act by Trump, has raised concerns as employment in the Los Angeles County film and television sector has declined significantly in recent years. Despite the narrative that Canada is absorbing a significant portion of U.S. film and TV productions, industry data indicates that while there is a decline in TV production overall, these productions are finding homes not only in Los Angeles but also in other American states and the U.K.
In 2024, a significant percentage of U.S.-scripted TV series were filmed in Los Angeles, followed by the U.K., Georgia, and British Columbia. The U.K. surpassed Canadian provinces as a filming destination for various types of productions in 2024, except for made-for-TV movies, where Canada led with a notable share.
The rivalry between Canada and the U.S. as filming locations dates back to the 1990s when Canada introduced federal tax credits to attract foreign productions. This move attracted Hollywood productions to Vancouver in the late ’90s, sparking protests in the U.S. and calls for countervailing tariffs against Canadian-filmed U.S. productions.
Despite the historical tensions, both Canada and the U.S. have implemented tax incentive programs to attract film productions. While Canada once stood out with significant incentives, the landscape has evolved globally, with multiple countries and U.S. states offering similar programs. The impact of a potential U.S. federal incentive on Canada remains uncertain, but the country’s unique attributes like a favorable exchange rate and skilled workforce continue to attract productions.
Industry experts suggest that U.S. productions in Canada will not disappear entirely, emphasizing the need for Canada to invest more in domestic projects and support initiatives like the Online Streaming Act. This act, which promotes Canadian content on global streaming platforms, is crucial for maintaining a robust Canadian film industry amidst evolving international dynamics.