The first project launched by French-born producer Philippe Rousselet’s new L.A.-based company Vendome, the $35 million sci-fi thriller Source Code, will be shot in Montreal.

”Things are looking good for 2010,’ says film commissioner Hans Fraikin, adding that the deal came together in a matter of weeks, while the $110 million War of Gods — which will begin shooting in Montreal in February — took over a year to firm up.

Producers Rousselet and Mark Gordon (Speed, 2012) are reported to be negotiating with Jake Gyllenhaal to star in the flick about a soldier who wakes up in the body of an unknown commuter and is forced to live and relive a train bombing until he can find the perpetrator.

Fraikin says the producers were attracted to Montreal because of Quebec’s generous tax credit, which covers 25% of all production related expenses. Gordon had already shot a film in Montreal and was satisfied with his experience, adds the commissioner.

Rousselet is also comfortable working in French, which can make some American producers hesitant about coming to Montreal. ‘But that’s changing. We assure them that when they come here, everyone can speak English,” insists Fraikin, adding that the shoot, which will likely begin in March, will create 542 jobs.

Like Ontario, Quebec’s film and TV production industry has been slow for the past few years, because of state tax incentives and the parity of the American and Canadian dollars in 2008. There was only $65 million of Hollywood production in Quebec last year, down from $265 million the year before.

Fraikin says the province’s service shoot sector has come alive again because of the Jean Charest government, which has sorted out a protracted labor dispute between two competing unions and introduced generous tax credits.