Lights will be shining bright at the Toronto International Film Festival this week, showcasing Canada’s significant role in the global film sector. However, as the U.S. deliberates on a national incentive program to retain film productions within its borders, it raises questions about how Canada’s film industry landscape may evolve.
President Donald Trump recently hinted at bipartisan support for establishing a federal tax incentive to encourage film production to remain in the U.S., preventing it from relocating to other countries, including Canada. 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 been advocating for such measures.
The U.S. film and television sector in Los Angeles County has experienced a decline, with a notable decrease in employment by approximately 26% since the end of 2010 and a significant drop of 38% compared to a peak in mid-2022, as reported by the Otis College of Art and Design. Similarly, there has been a substantial decrease in total shoot days for feature films and TV productions in Greater Los Angeles, down by 61% in 2025 compared to 2021, according to FilmLA.
While Trump’s statement may suggest that Canada is attracting a substantial portion of U.S. film and TV productions, industry data reveals a different narrative. Despite an overall decline in TV production, many productions are finding homes not only in Los Angeles but also in other U.S. states and the United Kingdom. In 2024, a significant percentage of U.S.-scripted TV series were filmed in Los Angeles, the U.K., Georgia, and British Columbia.
Canada has been a preferred filming destination for international productions, partly due to its federal tax credit introduced in 1997 to attract foreign projects. This move, which was followed by a similar incentive in British Columbia, triggered a shift of Hollywood productions to Canada in the late ’90s, sparking protests and calls for countervailing tariffs against U.S. productions filming in Canada.
Despite the historical tensions between the U.S. and Canada over film production incentives, the global landscape now features numerous jurisdictions offering competitive incentives. As of May, there were over 120 production incentives worldwide, including tax credits in most Canadian provinces and U.S. states. While Canada once stood out for its generous incentives, the global competition has expanded, with the U.K. securing major film productions like “Avengers: Doomsday.”
The impact of a U.S. federal tax incentive on Canada remains uncertain. Despite the potential changes, the Canadian film industry remains robust, with foreign productions contributing significantly to the economy and job market. Experts suggest that Canada’s appeal, including its favorable exchange rate, diverse landscapes, and skilled workforce, will continue to attract international productions.
In response to the evolving landscape, Canada aims to bolster its domestic industry by supporting homegrown projects and upholding regulations like the Online Streaming Act, which promotes Canadian content on global streaming platforms. While external factors may influence the industry, Canada remains focused on strengthening its cultural heritage and ensuring a vibrant domestic film sector.
