Hollywood Filmmaking is Back in the U.S.

For years, Hollywood was making movies in Canada - because of the cheaper Canadian dollar and subsidies.

Now, with the dollar down and states, such as Oregon increasing their tax rebates, film makers are returning to the U.S.

In British Columbia - the largest film center in Canada - 2007 motion picture revenues dropped 23% from 2006.

The Canadians are fighting back.

British Columbia extended its tax credit to 18% and is willing to accept the U.S. dollar at par on film making projects, as long as the U.S. dollar is below the Canadian dollar.

Halifax and Nova Scotia increased their tax credits to 50% and 60% respectively.