Lights illuminate this week at the Toronto International Film Festival, an esteemed occasion showcasing Canada’s prominence in the global film sector. However, as the U.S. mulls over a national incentive scheme to retain film productions domestically, could Canada, known for hosting numerous U.S.-based film shoots, witness a shift in its film industry landscape?
President Donald Trump recently mentioned bipartisan backing for establishing a federal tax incentive to retain film production in the U.S. and prevent it from relocating “to Canada and other Countries.” Trump expressed concerns about the dissipation of the U.S. film industry, particularly in Hollywood, labeling it a “Complete and Total Disaster.” He emphasized the detrimental impact on California due to the lack of incentives to remain in the region.
The proposed legislation, termed the Motion Picture, Television, and Entertainment Revitalization Act by Trump, has stirred discussions among industry professionals and advocates in the U.S. who have long advocated for such investments. Employment in Los Angeles County’s film and television sector had declined by approximately 26% by the end of 2025 compared to 2010 and by 38% from a mid-2022 peak, as per data from the Otis College of Art and Design.
While industry data shows an overall decrease in TV production, productions are diversifying their filming locations, with a significant portion finding homes not only in L.A. but also in other U.S. states and the U.K. In 2024, about 25% of U.S.-scripted TV series distributed were filmed in Los Angeles, while the U.K., Georgia, and British Columbia also attracted a notable share of productions.
Despite Canada’s popularity as a filming destination for international productions, recent trends indicate a broader distribution of TV and film productions across various regions, including the U.K. surpassing Canadian provinces in certain filming categories. The landscape of filming jurisdiction has been a longstanding topic of debate among U.S. stakeholders, Hollywood labor groups, and Canada, dating back to the late 1990s and early 2000s.
Canada was among the first countries to introduce a federal tax credit in 1997 to lure foreign productions, leading to a surge in filming activities, particularly in Vancouver. This move sparked protests in Hollywood and calls for countervailing tariffs against U.S. productions that leveraged Canadian subsidies. While there have been instances where Canada won production bids over the U.S. due to financial incentives and infrastructure, U.S. states and countries worldwide quickly followed suit by implementing their own tax incentive programs.
The introduction of a U.S. federal tax incentive has raised questions about its potential impact on Canada’s film industry, which heavily relies on foreign productions for job creation and economic growth. Despite the evolving global landscape of film production incentives, Canada’s unique attributes such as a favorable exchange rate, diverse landscapes, and skilled workforce continue to attract international productions.
As discussions unfold regarding the future of film sets in Canada, industry experts emphasize the importance of bolstering domestic projects and supporting initiatives like the Online Streaming Act to fortify the Canadian film industry’s resilience and cultural identity amidst shifting global dynamics.