Lights are set to shine on the Toronto International Film Festival this week, showcasing Canada’s prominent position in the global film industry. As the U.S. mulls over a national incentive program to retain film productions within its borders, there are questions about the potential impact on Canada, which hosts numerous U.S.-based film shoots.
President Donald Trump recently announced bipartisan support for a federal tax incentive aimed at keeping film production in the U.S. and preventing it from relocating to countries like Canada. This initiative, known as the Motion Picture, Television, and Entertainment Revitalization Act, has stirred discussions among U.S. film professionals and advocates who have long advocated for such investments.
Concerns have been raised about the decline in jobs within Hollywood’s traditional domain. Data from the Otis College of Art and Design indicates a significant drop in employment in the film and television sector in Los Angeles County over the past years. Despite this, industry data reveals that although there has been an overall decrease in TV production, the productions that are being made are finding homes not only in L.A. but also in other U.S. states and the U.K.
While Canada has been a favored filming destination for international productions, recent statistics show that U.S.-scripted TV series are filmed in various locations, with a notable percentage shot in Los Angeles, followed by the U.K., Georgia, and British Columbia. The U.K. surpassed Canadian provinces as a filming destination for streaming TV series, cable TV series, and movies with theatrical releases in 2024.
The ongoing debate between the U.S. and Canada over filming locations dates back to the late 1990s and early 2000s. Canada’s introduction of federal tax credits in 1997 to attract foreign productions sparked tensions and protests in Hollywood, leading to calls for countervailing tariffs against U.S. productions filmed in Canada with subsidies. Despite some instances where Canada secured film productions over the U.S. due to financial incentives, the global landscape of tax incentive programs has since evolved.
With over 120 production incentives worldwide, including in Canada and various U.S. states, the competition for film productions has intensified. The U.S.’s recent focus on supporting its film industry through federal incentives has raised concerns about the potential impact on Canada’s thriving film and TV production sector. However, industry experts believe that Canada’s appeal, including its favorable exchange rate, diverse landscapes, and skilled workforce, will continue to attract international productions.
As the film industry landscape evolves, Canada aims to strengthen its domestic industry by investing in local projects and supporting regulatory measures like the Online Streaming Act. The act, which promotes Canadian content on global streaming platforms, signifies Canada’s commitment to preserving its cultural identity and ensuring a robust domestic film industry.