Lights will shine bright this week at the Toronto International Film Festival, showcasing Canada’s significant role in the global film industry. However, as the U.S. mulls over implementing a national incentive program to retain film productions within its borders, there is speculation about potential shifts in Canada’s film industry landscape.
President Donald Trump recently mentioned bipartisan support for establishing a federal tax incentive to encourage film production to remain in the U.S. and prevent it from relocating to countries like Canada. Trump criticized the dissipation of the U.S. film industry, labeling Hollywood as a disaster and emphasizing the detrimental impact on California.
The proposed legislation, named the Motion Picture, Television, and Entertainment Revitalization Act by Trump, has sparked discussions among U.S. film professionals and advocates who have long advocated for such investments. Employment in the film and television sector in Los Angeles County has witnessed a significant decline in recent years, reflecting the challenges faced by the industry.
While Canada has been a favored filming destination for international productions, predominantly led by U.S. companies, industry data indicates a decline in overall TV production. Contrary to assumptions, a substantial portion of U.S.-scripted TV series in 2024 were filmed in locations other than Canada, including Los Angeles, the U.K., Georgia, and British Columbia.
Despite Canada’s historical popularity as a filming jurisdiction, recent trends show the U.K. surpassing Canadian provinces in hosting streaming TV series, cable TV series, and movies with theatrical releases. Canada’s prominence in hosting made-for-TV movies remains notable.
The debate between Canada and the U.S. as filming locations dates back to the late 1990s and early 2000s, with Canada pioneering federal tax credits to attract foreign productions. This move led to Hollywood’s significant interest in filming in Canada, sparking protests and discussions about countervailing tariffs on U.S. productions benefiting from Canadian subsidies.
The proliferation of tax incentive programs globally, including in the U.S. and various states, has reshaped the competitive landscape for filming locations. While Canada once stood out for its generous tax incentives, the current scenario involves numerous jurisdictions worldwide offering similar programs.
Amidst discussions about U.S. federal incentives potentially affecting the Canadian film industry, stakeholders emphasize the substantial economic contribution of foreign film and TV productions to Canada. The industry generates significant GDP and employment opportunities, with foreign productions playing a crucial role in driving growth.
Despite potential shifts in the industry dynamics, experts believe that Canada’s unique attributes, such as its favorable exchange rate, picturesque landscapes, and skilled workforce, will continue to attract U.S. productions. The focus now shifts to supporting domestic projects and bolstering initiatives like the Online Streaming Act to strengthen Canada’s cultural and film industry landscape.