Lights will shine brightly this week at the Toronto International Film Festival, showcasing Canada’s significant role in the global film industry. However, with the U.S. contemplating a national initiative to retain film productions within its borders, could Canada’s film sector landscape undergo a transformation?
President Donald Trump recently expressed bipartisan support for establishing a federal tax incentive to retain film production in the U.S. and prevent it from relocating to Canada and other countries. This move, dubbed the Motion Picture, Television, and Entertainment Revitalization Act, has sparked discussions among industry professionals and advocates in the U.S., who have long advocated for such investments.
The decline in employment within Los Angeles County’s film and television sector has been evident, with a notable decrease of about 26% at the end of 2025 compared to the end of 2010. Similarly, there was a 38% drop compared to a peak in mid-2022, as reported by the Otis College of Art and Design. In 2025, Greater Los Angeles witnessed a significant 61% decline in total shoot days for feature film and TV productions compared to 2021, according to data from FilmLA.
While the U.K. surpassed Canadian provinces as a preferred filming location for various types of TV series and movies in 2024, Canada did lead in made-for-TV movies. Despite the perception that Canada absorbs a vast share of U.S. film and TV productions, data indicates a broader distribution across states within the U.S. and the U.K.
The ongoing debate between the U.S., Hollywood labor groups, and Canada regarding filming locations dates back to the late 1990s and early 2000s. Canada’s implementation of federal tax credits in 1997 to attract foreign productions stirred controversies, leading to protests in Hollywood and calls for countervailing tariffs on U.S. productions filmed in Canada.
With over 120 production incentives worldwide, including various provincial programs in Canada and state-level tax credits in the U.S., the competition for attracting film productions has intensified globally. Despite the rhetoric surrounding Canada’s prominence in the film industry, factors like the country’s low currency value, diverse landscapes, and skilled workforce continue to attract international productions.
As discussions around a U.S. federal tax incentive unfold, industry experts emphasize the importance of supporting Canadian content and investing in the domestic film industry to secure the country’s cultural legacy independently of external developments.