Montreal’s film and television production sector faces a structural challenge as lawmakers in Washington evaluate a new 20% tax credit designed to encourage Hollywood studio productions to move in greater numbers to the United States. While local officials and industry representatives maintain that infrastructure limits and geographical proximity protect Quebec’s competitive edge, the proposed fiscal shift threatens a market share that generated 1,7 billion $ for the Quebec industry during the 2024–2025 fiscal year.
The Bottom Line
- Market Exposure: Foreign productions and service contracts accounted for nearly half of Quebec’s 3 billion $ film and television economy during the 2024–2025 fiscal period, which ended on March 31, according to data from the Institut de la statistique (ISQ).
- Potential Shift: A report commissioned by the Motion Picture Association indicates that a new 20% U.S. tax credit could drive the share of American films shot in the United States from 34% in 2025 to 65% by 2030.
- Strategic Pivot: Industry groups like the Bureau du cinéma et de la télévision du Québec (BCTQ) are pressing the provincial finance ministry to expand local tax credits to non-scripted formats such as reality television and game shows.
Washington Considers New 20% Tax Credit to Shift Production Home
Both Republican and Democratic lawmakers in the United States want to establish a tax credit to encourage Hollywood film crews to move in greater numbers to the United States. This legislative push threatens to alter production flows. Stéphane Cardin, president-directeur général of the Bureau du cinéma et de la télévision du Québec (BCTQ), acknowledged in an interview that the policy “could have a significant impact” if implemented.
Projections from a recent report commissioned by the Motion Picture Association—the lobby representing major Hollywood studios—suggest that introducing a 20% U.S. credit could alter geographical distributions. The proportion of American films shot within the United States could climb from 34% in 2025 to 65% by 2030. However, Cardin noted that this projection assumes competing jurisdictions would fail to adjust their own fiscal incentives.
Infrastructure Bottlenecks and Montreal’s Competitive Moat
Despite the looming threat from U.S. lawmakers, local industry leaders argue that an immediate exodus of production volume remains operationally unfeasible. Cardin dismissed the idea of a catastrophe, emphasizing that the American industry lacks the capacity to absorb such a volume of projects all at once. “It is impossible to repatriate that volume of production all at once,” he stated.
Furthermore, Montreal continues to leverage its geographic proximity to the United States. During a recent industry event that drew a dozen international studio executives to Montreal, local representatives reported sustained confidence in the city’s reputation. Beyond traditional soundstages, studio decision-makers highlighted specialized regional expertise in animation, video games, virtual reality, and artificial intelligence.
Balancing Foreign Direct Investment with Local Cultural Output
The reliance on Hollywood capital has fueled debates regarding the future of Quebec culture. However, the Alliance québécoise des techniciennes et techniciens de l’image et du son (AQTIS) argued in a recent submission to the Ministry of Finances that foreign productions act as a financial engine rather than a cultural threat. The union noted that international projects support a local workforce of 53 000 professionals while driving the acquisition of cutting-edge technical equipment.
| Metric | Figure | Context |
|---|---|---|
| Foreign Production Revenue | 1,7 billion $ | Generated during the 2024–2025 fiscal year ending March 31 (ISQ) |
| Total Sector Value | 3 billion $ | Foreign service work accounts for nearly 50% of the provincial total |
| Projected U.S. Domestic Share | 65% by 2030 | Up from 34% in 2025, per Motion Picture Association estimates |
| Supported Workforce | 53 000 workers | Maintained across Quebec’s production and technical ecosystem |
“It is important not to oppose culture and industry,” AQTIS stated in its memo, emphasizing that both sectors remain complementary and vital for maintaining economic stability. Cardin added that Quebec’s ecosystem avoids the structural vulnerability seen in markets like Vancouver, where regional production relies much more heavily on incoming American studio slates.
Diversification Efforts and Unscripted Expansion
To insulate the provincial economy against potential policy shifts in Washington, Quebec stakeholders are pursuing market diversification. Canada maintains active coproduction treaties with roughly 50 nations. Trade missions, such as a delegation organized by Patrimoine Canada to South Korea in 2025, reflect these broader export objectives.
Locally, the BCTQ has submitted formal proposals to the Ministry of Finances requesting an expansion of the provincial tax credit structure to include non-scripted formats, such as game shows and reality television. Whether these regulatory adjustments will pass and how the U.S. legislative process will ultimately treat the proposed 20% federal credit remain open questions.
