Lights will shine bright this week at the Toronto International Film Festival, showcasing Canada’s prominent role in the global film industry. However, as the U.S. mulls over a national incentive program to retain film productions within its borders, questions arise about the potential impact on Canada, a popular filming destination for U.S.-based productions.
President Donald Trump recently expressed bipartisan support for establishing a federal tax incentive to keep film production in the U.S. and prevent it from relocating to countries like Canada. This proposed legislation, dubbed the Motion Picture, Television and Entertainment Revitalization Act, has stirred discussions among industry professionals and advocates in the U.S. who have long advocated for such investments.
The decline in employment within Los Angeles County’s film and television sector highlights the challenges faced by Hollywood. Despite Canada being a favored filming location for international productions, data indicates that while there is an overall decrease in TV production, shows are finding homes not only in Los Angeles but also in other U.S. states and the U.K.
In 2024, a significant portion of U.S.-scripted TV series production was distributed in Los Angeles, followed by the U.K., Georgia, and British Columbia. The U.K. surpassed Canadian provinces as a preferred filming location for various types of TV series and movies in 2024, with Canada leading only in made-for-TV movies.
The historical battle between the U.S., Canada, and Hollywood labor groups over filming locations dates back to the late ’90s and early 2000s. Canada’s implementation of federal tax credits in 1997 marked a turning point, attracting foreign productions and sparking debates in the U.S. about countervailing tariffs against Canadian filming incentives.
Despite some instances where Canada secured productions that might have filmed in the U.S., the proliferation of tax incentive programs globally led to a shift in the industry landscape. With various regions offering lucrative incentives, the competition for attracting film productions has intensified, with the U.K. landing major projects like the upcoming “Avengers: Doomsday.”
The potential impact of a U.S. federal incentive on Canada remains uncertain, as the Canadian film and TV industry heavily relies on foreign productions for economic contributions and job creation. Experts emphasize that Canada’s competitive advantages, including a favorable exchange rate, diverse landscapes, and skilled workforce, will continue to attract U.S. productions, despite evolving industry dynamics.
As discussions around supporting domestic projects and strengthening regulatory frameworks like the Online Streaming Act persist, industry stakeholders stress the importance of Canada asserting its cultural sovereignty and nurturing a robust domestic film industry amidst global shifts in film production dynamics.