After 2 years of state subsidies for film production in California, a new report shows that the film tax credit has created over 20,000 jobs and put an extra $3.8 billion into the local economy.

The news will be met with praise from the film industry as the study from the Los Angeles Economic Development Corp proves how vital film tax rebates are to luring production and inward investment in the region.

With added production, more jobs have been created, particularly in areas where special skills are needed. Hollywood is home to the American movie industry, and boasts an enormous workforce of highly skilled labor.

From post-production houses to film studios and indie production companies shooting HD promos, LA and the region has always been a production center.

Film tax rebates awarded in the state these past two years went to 110 different projects which produced over $800 million in production spending alone.

Even though California's state tax is less competitive than that of other states, which offer up to a 40% rebate such as in Michigan, many productions shoot their because of the facilities available.

What does this mean for the wider film industry in America? Should tax rebates be expanded or albeit a government body set up to fund financially viable movies that can earn big both domestically and internationally?