Lights will illuminate the Toronto International Film Festival this week, showcasing Canada’s significant role in the global film sector. The United States is contemplating a national incentive program to retain film productions domestically, potentially impacting Canada, a frequent location for U.S.-based film shoots.
President Donald Trump recently expressed bipartisan support for a federal tax incentive to retain film production in the U.S. and prevent it from shifting to other countries, including Canada. The proposed legislation, named the Motion Picture, Television, and Entertainment Revitalization Act by Trump, has garnered attention from industry professionals and advocates in the U.S., who have long advocated for such investments.
The U.S. film and television sector in Los Angeles County witnessed a decline in employment of around 26% by the end of 2025 compared to 2010 and a 38% drop from a mid-2022 peak, according to the Otis College of Art and Design. Despite the perception that Canada absorbs a large share of film and TV productions from U.S. studios, data indicates that productions are also finding homes in various American states and the U.K., not just in Canada.
In 2024, the U.K. surpassed Canadian provinces as a filming destination for streaming and cable TV series as well as movies with theatrical releases. While Canada leads in made-for-TV movies, the distribution of U.S.-scripted TV series in 2024 shows that a significant percentage were filmed in Los Angeles, the U.K., Georgia, and British Columbia.
The rivalry between Canada and the U.S. over filming locations dates back to the late 1990s and early 2000s, when Canada implemented federal tax credits to attract foreign productions. This move drew criticism from Hollywood and led to calls for countervailing tariffs against U.S. productions filmed in Canada with subsidies. Despite conflicts, Canada’s incentives have attracted significant productions and investments, prompting other states and countries to adopt similar programs.
With numerous tax incentive programs available globally, Canada’s film industry faces uncertainties amid Trump’s push for a U.S. federal tax incentive. The Canadian film sector, heavily reliant on foreign productions, generates substantial economic benefits and jobs. While the impact of the U.S. incentive on Canada remains uncertain, the country’s unique attributes like a favorable exchange rate, picturesque landscapes, and skilled workforce continue to attract filmmakers.
As discussions on film incentives unfold, industry experts emphasize the importance of supporting Canadian projects and reinforcing regulations like the Online Streaming Act. This act, which aims to enhance Canadian content on global streaming platforms, underlines Canada’s commitment to nurturing its domestic film industry amidst evolving international dynamics.