Lights are set to go up this week at the Toronto International Film Festival, showcasing Canada’s prominent role in the global film industry. However, with the U.S. contemplating a national incentive program to retain film productions within its borders, there is speculation about potential shifts in Canada’s film industry landscape, which serves as a filming hub for many U.S.-based productions.
President Donald Trump recently mentioned bipartisan support for establishing a federal tax incentive to encourage film production to remain in the U.S. and prevent it from relocating to other countries, including Canada. Trump expressed concerns about the dissipation of the U.S. film industry and its detrimental impact on California, labeling Hollywood as a “Complete and Total Disaster.”
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. Notably, employment in the film and television sector in Los Angeles County witnessed a significant decline by the end of 2025, indicating challenges faced by the industry.
While Canada has been a favored filming destination for international productions, data indicates a decline in overall TV production. Despite assumptions that Canada attracts the majority of U.S. film and TV productions, industry reports reveal that productions are also finding homes in various American states and the U.K.
The U.K. surpassed Canadian provinces in hosting streaming TV series, cable TV series, and movies with theatrical releases in 2024. However, Canada led in made-for-TV movies, demonstrating its appeal for specific types of productions.
The ongoing debate between the U.S., Canada, and Hollywood labor groups dates back to the late 1990s and early 2000s. Canada’s early implementation of federal tax credits in 1997 to attract foreign productions sparked tensions and protests from U.S. industry stakeholders. Subsequently, other states and countries worldwide introduced their own incentive programs to compete in attracting film productions.
As global competition intensifies with numerous jurisdictions offering financial incentives, Canada’s position in the film industry remains significant due to factors like a favorable exchange rate, diverse landscapes, and a skilled workforce. Despite potential impacts from a U.S. federal tax incentive, experts believe Canada’s unique attributes will continue to attract productions.
To safeguard its domestic film industry, Canada must invest in local projects and support legislation like the Online Streaming Act. By focusing on strengthening its homegrown industry and promoting Canadian content, the country can assert control over its cultural destiny amid evolving global dynamics in the film sector.