Lights will shine bright 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 the potential impact on Canada, which hosts numerous U.S.-based film sets.

U.S. President Donald Trump recently mentioned 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, aimed at revitalizing the Motion Picture, Television, and Entertainment sectors, has garnered attention from industry professionals and advocates in the U.S.

While Hollywood has witnessed a decline in employment and production, Canada has been a favored filming location for international productions. Despite the perception that Canada attracts a significant share of U.S. film and TV productions, data reveals that productions are also finding homes in various American states and the U.K.

The U.K. surpassed Canadian provinces as a preferred filming jurisdiction for various TV series and movies in 2024. Although Canada leads in made-for-TV movies, the distribution of U.S.-scripted TV series is diversified across Los Angeles, the U.K., Georgia, and British Columbia.

The rivalry between Canada and the U.S. as filming locations dates back to the late 1990s when Canada introduced federal tax credits to attract foreign productions. This move drew backlash from Hollywood, with calls for countervailing tariffs on U.S. productions filmed in Canada. Despite controversies, Canada’s film industry has continued to thrive, attracting major productions like “Brokeback Mountain.”

With over 120 production incentives globally, including tax credits in most Canadian provinces and U.S. states, the competition for attracting film productions remains fierce. Amidst debates on the impact of a U.S. federal incentive on Canada’s film industry, industry experts emphasize the need for Canada to invest in domestic projects and support initiatives like the Online Streaming Act to strengthen its cultural landscape.