Lights are set to shine on the Toronto International Film Festival this week, showcasing Canada’s prominent position in the global film sector. As the U.S. mulls over a potential national incentive program to retain film productions within its borders, questions arise about the impact on Canada, which hosts numerous U.S.-based film sets.
U.S. President Donald Trump recently expressed bipartisan support for establishing a federal tax incentive to keep film production in the U.S. and prevent it from relocating “to Canada and other Countries.” Trump highlighted concerns about the diminishing U.S. film industry, citing a meeting with actor Jon Voigt.
The proposed legislation, dubbed 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. Data from the Otis College of Art and Design revealed a significant decline in employment within Los Angeles County’s film and television sector in recent years.
While Canada has been a favored filming destination for international productions, data indicates a broader shift in the distribution of TV productions, with many finding homes not only in L.A. but also in other U.S. states and the U.K. The U.K. surpassed Canadian provinces as a filming jurisdiction for various types of TV series and movies in 2024.
The longstanding competition between Canada and the U.S. for filming locations dates back to the late 1990s and early 2000s. Canada’s implementation of federal tax credits in 1997 to attract foreign productions triggered backlash from Hollywood, leading to calls for countervailing tariffs on U.S. productions filmed in Canada.
Despite historical tensions, Canada’s film industry has thrived, attracting major productions such as “Brokeback Mountain” due to competitive financial incentives and robust film infrastructure. Global incentives for film productions have proliferated, with various countries and U.S. states implementing tax credit programs to attract filmmakers.
The potential impact of a 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 in recent years. Industry experts emphasize that Canada’s unique attributes, such as its favorable exchange rate, diverse landscapes, and skilled workforce, continue to attract international productions.
In response to the evolving landscape, industry stakeholders stress the importance of supporting homegrown projects and upholding regulations like the Online Streaming Act to bolster the Canadian film industry’s resilience. While the U.S. focuses on revitalizing its film sector, Canada aims to strengthen its cultural identity and domestic industry.
The future of film sets in Canada remains intertwined with global trends and evolving industry dynamics, highlighting the need for strategic initiatives to sustain the country’s vibrant film sector.
