Lights will be shining bright this week at the Toronto International Film Festival, showcasing Canada’s prominent position in the global film industry. However, as the U.S. mulls over the possibility of instituting a national incentive program to retain film productions within its borders, there are concerns about the potential impact on Canada, which hosts numerous U.S.-based film sets.
President Donald Trump recently mentioned bipartisan backing for a federal tax incentive to encourage film production in the U.S. and prevent it from relocating to other countries, including Canada. Trump criticized the current state of the U.S. film industry, labeling Hollywood as a disaster and highlighting the detrimental effects on California due to the lack of incentives.
The proposed legislation, dubbed the Motion Picture, Television, and Entertainment Revitalization Act by Trump, has sparked discussions among industry professionals and advocates in the U.S. who have long advocated for such measures. Data from the Otis College of Art and Design shows a significant decline in employment within Los Angeles County’s film and television sector, indicating a shift in the industry landscape.
While Canada has been a sought-after filming destination for international productions, recent industry data reveals a decline in TV production overall. Despite this, TV series are finding homes not just in Los Angeles but also in other U.S. states and the U.K. A significant percentage of U.S.-scripted TV series in 2024 were filmed in Los Angeles, with notable shares also going to the U.K., Georgia, and British Columbia.
Although Canada has been portrayed as a major recipient of film and TV productions from U.S. studios, the reality is that various locations worldwide, including the U.K., are attracting significant projects. Canada’s historical role as a filming jurisdiction, dating back to the 1990s, has been a point of contention with U.S. stakeholders.
Canada was one of the first countries to introduce federal tax credits in 1997 to lure foreign productions, leading to a surge in filming activities in the late ’90s. This move sparked protests in Hollywood and calls for tariffs on U.S. productions filmed in Canada with subsidies. Despite initial resistance, many jurisdictions worldwide, including U.S. states, adopted their own tax incentive programs to compete in the global market.
As the film industry landscape evolves with incentives available globally, Canada’s film sector faces uncertainties amid Trump’s push for a U.S. federal tax incentive. However, industry experts believe that Canada’s unique offerings, such as a favorable exchange rate, diverse landscapes, and skilled workforce, will continue to attract international productions. To strengthen its domestic industry, Canada aims to invest in local projects and uphold legislative measures like the Online Streaming Act.
In conclusion, while the U.S. government’s focus on bolstering its film industry may pose challenges for Canada, the country’s rich film heritage and competitive advantages position it well in the global filmmaking landscape.
