Lights will come on this week at the Toronto International Film Festival, showcasing Canada’s significance in the global film industry. However, there are concerns about the impact of a potential U.S. national incentive program aimed at retaining film productions within the U.S., which could alter Canada’s film industry landscape.
U.S. President Donald Trump recently mentioned bipartisan support for establishing a federal tax incentive to maintain film production in the U.S. and prevent it from relocating to Canada and other countries. This initiative, referred to as the Motion Picture, Television, and Entertainment Revitalization Act, has generated interest among industry professionals and advocates in the U.S. who have long advocated for such investments.
The U.S. film and television sector in Los Angeles County has witnessed a significant decline in employment over the years, with a notable decrease in shoot days for feature films and TV productions in Greater Los Angeles. Despite the perception that Canada is attracting a substantial number of film and TV productions, industry data indicates a broader distribution of productions across various locations, including L.A., other U.S. states, and the U.K.
While Canada has been a favored filming destination for international productions, including those led by U.S. companies, recent trends show a diversification of filming locations globally. The U.K. surpassed Canadian provinces as a filming jurisdiction for various types of productions in 2024, indicating a shift in the distribution of filming projects.
The historical competition between Canada and the U.S. as filming locations dates back to the late 1990s when Canada introduced federal tax credits to attract foreign productions. This move sparked tensions in Hollywood, leading to protests and calls for trade measures against Canadian subsidies. Despite occasional victories in attracting productions from the U.S., Canada’s incentives prompted other regions worldwide to adopt similar programs.
The proliferation of production incentives globally has transformed the competitive landscape, with various jurisdictions offering tax credits and incentives to attract film and TV productions. Despite the changing dynamics, Canada remains a significant player in the film industry, with a robust infrastructure and skilled workforce continuing to attract international projects.
The potential impact of a U.S. federal incentive on Canada’s film industry remains uncertain, with industry experts emphasizing the importance of investing in domestic projects and supporting legislative measures like the Online Streaming Act. Canada’s ability to shape its cultural destiny and strengthen its domestic industry will be crucial in navigating the evolving landscape of global film production.