The Devil is coming to Toronto, courtesy of the Pennsylvania state legislature and M. Night Shyamalan. Shyamalan has reportedly backed out of plans to shoot the horror-thriller in Philadelphia because of uncertainty surrounding the state’s tax credit, and so the film is expected to shoot in Toronto this fall.

Officials say the project started eyeing the region a few months ago. ‘Everybody knows they’ve been having challenges in Pennsylvania,’ says Toronto film commissioner Peter Finestone. ‘So they [Devil] were out scouting, seeing where they might shoot if that didn’t work out for them.’

Pennsylvania lawmakers have been at an impasse on the state’s budget and the potential renewal of its tax break. According to a report in the Philadelphia Inquirer, Shyamalan and his backers could not wait any longer and instead went north. Ontario recently expanded its tax break for foreign projects, looking to spend its way out of a production slump.

And it appears to be working. Donna Zuchlinski of the Ontario Media Development Corporation notes that the province is currently hosting over 30 productions, up from 17 in mid-August 2008. ‘Plus there are a number of others that are close to landing. It’s very encouraging,’ says Zuchlinski.

Shyamalan has, until now, made a point of shooting his films close to his hometown of Philadelphia, including his 1999 breakthrough The Sixth Sense and the more recent The Happening. His films have given the state an estimated economic boost of $375 million. He is currently shooting The Last Airbender in Pennsylvania.

Shyamalan wrote the Devil story and has a producer credit but, in another rare move, will not direct. The helmers on the picture are instead John Erick Dowdle (Quarantine) and Drew Dowdle.

Destination Home, another film set for Philadelphia, is also said to be considering a move to Toronto – or Georgia, or Louisiana – for reasons including the uncertain tax credit.