As the Toronto International Film Festival opens this week, the global film production landscape faces potential upheaval following proposals for a U.S. national incentive program designed to keep studio sets stateside and curb production flight to Canada and other international jurisdictions.
U.S. Federal Film Incentive Proposal Targets Production Flight to Canada
U.S. President Donald Trump announced last week that there is bipartisan support to create a federal tax incentive aimed at stopping film production from moving “to Canada and other Countries.” According to remarks following a meeting with actor Jon Voigt and reported by CBC News, Trump described the domestic film industry as being “dissipated in its entirety,” calling Hollywood a “Complete and Total Disaster” due to a lack of competitive incentives that hurts California severely.
The prospective legislation has been dubbed the Motion Picture, Television and Entertainment Revitalization Act. This push arrives as Hollywood’s original hub deals with steep employment declines. According to data from the Otis College of Art and Design cited by CBC News, employment in Los Angeles County’s film and television sector dropped roughly 26 percent at the end of 2025 compared to late 2010, and fell 38 percent from a mid-2022 high.
Production volume has mirrored those losses. FilmLA tracked 8,581 total shoot days for feature films and TV productions in Greater Los Angeles in 2025, marking a 61 percent drop from 2021.
Did you know? Canada was one of the first countries to introduce a direct federal tax credit for foreign productions in 1997, covering a percentage of qualifying Canadian labour on sets to spark a Vancouver production boom.
Global Competition Outpaces Canada in Capturing U.S. Studio Projects
While Trump’s messaging suggests Canada absorbs the majority of departing U.S. productions, industry distribution data indicates a more complex picture. According to FilmLA metrics for 2024 cited by CBC News, roughly 25 per cent of U.S.-scripted TV series distributed that year filmed in Los Angeles. Meanwhile, 12.5 per cent filmed in the U.K., 9.6 per cent filmed in Georgia, and 8.4 per cent filmed in British Columbia.
Data shows the U.K. surpassed Canadian provinces as a filming jurisdiction for streaming TV series, cable TV series, and theatrical release movies in 2024. Canada led only in made-for-TV movies, capturing roughly 26 per cent of those distributed in 2024 in British Columbia, according to FilmLA.
Wilfrid Laurier University communication studies associate professor Jade Miller told CBC News that Canada’s initial advantage with large tax incentives in the late 1990s has since been replicated worldwide. As of May, the Global Incentives Index by SPI counted at least 120 production incentives globally, with nearly every Canadian province and a majority of U.S. states offering tax credits. Consequently, Miller characterizes the recent U.S. political focus on Canada as “just political rhetoric.”
Economic Stakes and Future Outlook for Canadian Film Sets
The Canadian Media Producers Association (CMPA) reports that foreign film and TV productions generated more than 97,000 jobs in Canada during the 2024/25 period. CMPA president and CEO Reynolds Mastin told CBC News that the sector represents a roughly $10 billion GDP contribution and 180,000 full-time jobs, with foreign projects accounting for about half.
| Region / Jurisdiction | Share of 2024 U.S.-Scripted TV Filming | Key Sector Strength |
|---|---|---|
| Los Angeles | ~25 per cent | Domestic hub |
| United Kingdom | ~12.5 per cent | Streaming, cable, and theatrical movies |
| Georgia (U.S.) | ~9.6 per cent | U.S. regional production |
| British Columbia (Canada) | ~8.4 per cent | Made-for-TV movies and series |
According to CMPA data, foreign production volume—including visual effects work—jumped 9.5 percent in 2024/25 to reach $5.3 billion, while domestic Canadian film and TV production decreased 2.2 percent. High-profile international projects like Frankenstein, Tron: Ares, and HBO’s The Last of Us—which contributed over $141 million to Alberta’s economy in 2023 per a Motion Picture Association Canada report—demonstrate ongoing foreign investment.
Industry experts emphasize that a U.S. federal tax incentive would not completely eliminate U.S. productions in Canada. Mastin noted that Canada’s low dollar, unique landscape, and skilled workforce remain vital assets. However, he argues that Canada must counter U.S. pushes by increasing funding for homegrown projects and maintaining support for the Online Streaming Act, which mandates that global streamers boost Canadian content.
Frequently Asked Questions
What is the Motion Picture, Television and Entertainment Revitalization Act?
It is a proposed U.S. federal tax incentive announced by President Donald Trump designed to keep film and television production within the United States rather than moving to Canada and other countries.
How much does the film industry contribute to Canada’s economy?
According to the Canadian Media Producers Association, foreign and domestic film and TV productions generate roughly $10 billion in GDP and support 180,000 full-time jobs in Canada.
Does Canada receive the majority of departing Hollywood productions?
No. Industry data from FilmLA shows that U.S.-scripted series also distribute production across various American states like Georgia and international hubs like the United Kingdom, which outpaced Canadian provinces in streaming and theatrical releases in 2024.
What advantages keep film crews coming to Canada?
Industry stakeholders cite Canada’s low dollar, unique landscape, skilled workforce, and provincial tax credit programs as primary ongoing draws.
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