Lights will be shining bright this week at the Toronto International Film Festival, showcasing Canada’s significant presence in the global film sector. The U.S. is contemplating a national incentive program to retain film productions within its borders, raising questions about potential shifts in Canada’s film industry status.
President Donald Trump recently mentioned bipartisan backing for establishing a federal tax incentive to preserve film production in the U.S. and prevent it from relocating to countries like Canada. Trump expressed concerns about the dissipation of the U.S. film industry and its negative impact on California, labeling Hollywood as a “Complete and Total Disaster.”
The proposed legislation, named the Motion Picture, Television and Entertainment Revitalization Act by Trump, has stirred discussions among U.S. film professionals and advocates who have long advocated for such investments. Data from the Otis College of Art and Design indicates a decline in employment within the film and television sector in Los Angeles County, with a substantial drop in production volume recorded by FilmLA.
While Canada has been a popular choice for international film productions, particularly those led by U.S. companies, current industry data reveals a shift in TV production trends. Despite a decrease in overall TV production, projects are now being distributed not only in Los Angeles but also in various U.S. states and the U.K.
Although Canada has been highlighted in Trump’s remarks, statistics show that a significant proportion of U.S.-scripted TV series were filmed in locations other than Canada in 2024. The U.K. surpassed Canadian provinces as a filming destination for streaming TV series, cable TV series, and movies with theatrical releases that year.
The historical battle between U.S. policymakers, Hollywood labor groups, and Canada regarding filming locations dates back to the late 1990s and early 2000s. Canada’s implementation of federal tax credits in 1997 to attract foreign productions triggered tensions in Hollywood, leading to protests and calls for countervailing tariffs against Canadian-assisted U.S. productions.
Despite the competition, Canada continues to attract significant film productions due to its unique advantages, such as a favorable exchange rate, diverse landscapes, and a skilled workforce. As discussions on U.S. federal tax incentives unfold, Canada aims to bolster its domestic industry by supporting local projects and upholding regulations like the Online Streaming Act.