Lights are set to go up this week at the Toronto International Film Festival, showcasing Canada’s prominent position in the global film industry. However, with the U.S. contemplating a national incentive program to retain film productions within its borders, there are concerns about potential shifts in Canada’s film industry landscape, which hosts numerous U.S.-based film sets.
President Donald Trump recently mentioned bipartisan backing for establishing a federal tax incentive to keep film production in the U.S. and prevent it from relocating “to Canada and other Countries.” Following a meeting with actor Jon Voigt, Trump expressed dissatisfaction with the state of the U.S. film industry, claiming it is facing significant challenges and causing harm to California.
The proposed legislation, dubbed 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. Data from the Otis College of Art and Design shows a decline in employment within the film and television sector in Los Angeles County, with a substantial drop compared to previous years.
While there is a perception that Canada is attracting a significant share of U.S. film and TV productions, industry data suggests that although there is an overall decline in TV production, these productions are finding homes not only in L.A. but also in other U.S. states and the U.K. The distribution of U.S.-scripted TV series in 2024 reveals a diverse landscape, with a notable portion filmed in Los Angeles, the U.K., Georgia, and British Columbia.
The historical battle between the U.S., Hollywood labor groups, and Canada regarding filming locations dates back to the late 1990s and early 2000s. Canada’s introduction of federal tax credits in 1997 to attract foreign productions triggered a significant shift in the industry, leading to Hollywood’s relocation to Vancouver. This move sparked protests in Hollywood and calls for countervailing tariffs against U.S. productions that benefited from Canadian subsidies.
Despite initial tensions, the proliferation of tax incentive programs globally has created a more competitive environment. With Canada once standing out with substantial tax incentives, the landscape has evolved, with various countries and states offering similar incentives. The impact of a potential U.S. federal incentive on Canada remains uncertain, but industry experts emphasize the importance of supporting domestic projects and upholding regulations like the Online Streaming Act to bolster the Canadian film industry’s resilience.