After a challenging year that saw Canada’s production industry grind to a halt amid the Hollywood writers’ and actors’ strikes, the country is now seeing a resurgence. Productions are returning, soundstages are filling up, and international producers are once again eyeing Canada as a top destination for filming.

The numbers speak for themselves—Ontario and British Columbia, two of Canada’s biggest production hubs, saw a 26% drop in production spending in 2024, but now, the industry is recovering faster than expected. Major incentives, a favorable exchange rate, and a highly developed production infrastructure are fueling this comeback, making Canada a go-to choice for studios and streamers looking to shoot high-profile content.

Hollywood’s Return to Canada

“Despite all the uncertainty, things are ticking along very well right now,” says Karen Thorne-Stone, President & CEO of Ontario Creates, which markets the province to global producers. “Production levels are looking strong, and the rebound has been faster than anticipated.”

Much of the industry’s renewed momentum comes from the generous tax incentives Canada offers. Major projects are benefiting from incentives like:

• Ontario’s 21.5% tax credit for domestic and international productions

• British Columbia’s 28% tax credit on labor and 35% for visual effects

• Manitoba’s 45% film tax credit (up to 65% with bonuses!)

• Newfoundland and Labrador’s 40% tax credit

Meanwhile, the weak Canadian dollar compared to the U.S. dollar is giving Hollywood productions even more savings, making Canada one of the most cost-effective places to film in the world. If proposed U.S. tariffs push the Canadian dollar even lower, production costs could drop even further for Hollywood studios filming up north.

Where the Action Is: Key Production Hubs Reignite

From Vancouver to Newfoundland, production is ramping up nationwide, with high-profile projects fueling Canada’s resurgence:

 Ontario:

•The Handmaid’s Tale just wrapped filming in Toronto, but its sequel, Testaments, will begin shooting in March 2025.

•Amazon’s Reacher set up shop in St. John’s, Newfoundland, doubling for Portland, Maine.

•Apple TV+’s Severance shot an episode on the Bonavista Peninsula, showcasing Newfoundland’s stunning landscapes.

Manitoba:

•Nobody 2, starring Bob Odenkirk, and the thriller Normal were filmed in Winnipeg, drawn by Manitoba’s highly competitive tax incentives and ability to double for U.S. cities.

 Newfoundland & Labrador:

•The family drama Hudson & Rex and The CW’s Son of a Critch were among the projects taking advantage of the province’s unique coastal backdrops and 40% film tax credit.

British Columbia:

•Vancouver, long a Hollywood favorite, is seeing a surge in scouting requests for 2025.

• Bridge Studios is expanding with 20 new soundstages across 18 acres, built to accommodate blockbuster-level productions.

• The B.C. film industry is leading the charge in green production, integrating fossil fuel-free facilities and sustainable energy solutions into its expanding infrastructure.

What’s Next? The Global Race for Productions

While Canada’s rapid recovery is impressive, competition in the global production landscape is fiercer than ever. The U.K. and Eastern Europe continue to boost incentives to lure productions, making it a highly competitive market for Hollywood shoots.

However, Canada remains one of the most attractive destinations for major productions, thanks to:

• Unparalleled crew expertise with deep experience in major productions.

•  Established studio infrastructure that continues to expand.

•  Generous tax incentives and a cost-effective currency.

• Versatile locations that can double for nearly anywhere in the world.

“With the infrastructure we have here—both human and physical—eventually we will prevail,” says Victoria Harding, Executive Director of the Directors Guild of Canada, Ontario. And based on the momentum already building in 2025, Canada’s reign as a top-tier filming destination isn’t slowing down anytime soon.

The Bottom Line

Hollywood’s love affair with Canada is back in full swing. The combination of competitive tax credits, a world-class production workforce, and increasing investment in soundstages and green production practices makes Canada a prime location for productions of all sizes.

With blockbuster franchises, high-end TV productions, and independent films flocking back, Canada is once again proving why it remains one of the best places in the world to make movies.