Movie tax credits are back in vogue south of the border, posing a renewed challenge for Hollywood North.

The California Film Commission this week doled out $100 million in tax-based production incentives for 2011 – all in one day.

The program gave tax credits to 30 Los Angeles-based film and TV projects to stem the flight of production to rival U.S. states, Canada and elsewhere internationally.

California has set aside $100 million each year for its film tax credit program, through 2014.

Most of the projects that received coin for the coming year are expected to start production this fall, and complete shooting in calendar 2011.

And while California has run dry for 2011, the state of New York is back in the film money business after it renewed its 30% film tax credit worth $420 million annually, or $2.1 billion over five years.

New York state last year offered $350 million worth of film and TV tax credits, but was quickly tapped out due to excessive demand.

That empty tank forced a host of U.S. producers to shift their projects elsewhere, including Warner Bros. Television’s Fringe relocating to Vancouver.

Montreal film commissioner Hans Fraikin noted the new multi-year film tax credit activity stateside, but cautioned U.S. producers face a familiar dilemma on whether to locate to a cash-strapped U.S. state where a film tax credit program could run dry.

“Once those funds are depleted, there’s nothing left,” Fraikin told Playback Daily.

By contrast in Quebec and Ontario, where recently-introduced 25% all-spend tax credits have no ceilings, a U.S. producer is guaranteed a rebate on money they spend locally.

Fraikin said some U.S. producers have relocated projects to Montreal for budget planning certainty, but he can’t identify them to avoid “rubbing it in their noses.”