Lights will shine this week at the Toronto International Film Festival, a renowned event showcasing Canada’s role in the global film sector. However, with the U.S. contemplating a national incentive program to retain film productions domestically, there are concerns about potential shifts in Canada’s film industry landscape, which hosts numerous U.S.-based film sets.
President Donald Trump recently stated that there is 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 his views following a meeting with actor Jon Voigt, emphasizing the challenges faced by the U.S. film industry and Hollywood’s struggles in California.
The proposed legislation, labeled 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 has declined significantly in recent years, with a notable decrease in production volume.
While industry data indicates an overall decline in TV production, the productions that are being created are finding homes not only in Los Angeles but also in other American states and the U.K. A significant portion of U.S.-scripted TV series distributed in 2024 were filmed in various locations, including Los Angeles, the U.K., Georgia, and British Columbia.
The U.K. surpassed Canadian provinces as a preferred filming destination for streaming TV series, cable TV series, and theatrical release movies in 2024. However, Canada led in made-for-TV movies production. Despite Canada’s popularity as a filming destination, the U.S. has been emphasizing Canada in recent messaging, raising questions about the reasons behind this focus.
The competition between Canada and the U.S. as filming locations has roots dating back to the late 1990s and early 2000s. Canada’s implementation of federal tax credits in 1997 to attract foreign productions sparked controversy and led to protests in Hollywood, prompting calls for countervailing tariffs against U.S. productions that utilized Canadian subsidies.
Although Canada has attracted major productions due to its financial incentives, other countries and U.S. states have also introduced their own tax incentive programs. The global landscape now offers various financial incentives, with the U.K. securing major film productions. Despite the competitive environment, Canada’s film industry remains resilient, drawing on its unique advantages.
The impact of a potential U.S. federal incentive on Canada’s film industry remains uncertain. Foreign film and TV productions have significantly contributed to Canada’s economy and job market, emphasizing the industry’s importance. Maintaining a strong Canadian domestic industry and supporting homegrown projects are vital strategies for Canada amidst evolving global dynamics in the film sector.