State leaders on Wednesday announced a deal to expand, extend and improve California’s Film and Television Tax Credit Program, a move that has been praised by local elected officials.

The agreement increases the tax credit to $330 million a year for five years beginning with fiscal year 2015-16 and replaces the currently flawed and arbitrary lottery system with a more competitive and accountable system.

“This law will make key improvements in our Film and Television Tax Credit Program and put thousands of Californians to work,” Gov. Jerry Brown said.

The current film tax credit allows the California Film Commission to allocate up to $100 million of income tax credits a year to limited kinds of productions made in California. A lottery is used to award the credit. The new tax credit program eliminates the lottery system and applicants will instead be ranked according to net new jobs created and overall positive economic impacts for the entire state.

The legislation, AB 1839, was authored by Assemblymen Mike Gatto (D-Los Angeles) and Raul J. Bocanegra (D-Los Angeles).

“This legislation means that the long journey started by our work with Tom Sherak and continued with Ken Ziffren is ending in success for California’s middle class,” Mayor Eric Garcetti said. “I’m grateful to the governor and the Legislature for this important measure to protect and expand an industry that is integral to our economy and our identity. I look forward to putting this legislation into action in partnership with California’s mayors, state lawmakers, the California Film Commission, the industry and especially labor to restore California’s ability to compete for film production. The heart and soul of the entertainment industry are the artisans, craftspeople and tradespeople who you never see on screen, and that’s who will benefit from this legislation. We are the entertainment capital of the world and this legislation will make sure it stays that way. I want to especially thank Governor Brown, Sen. [Kevin] de León, Speaker [Toni] Atkins, Assemblymember Gatto and Assemblymember Bocanegra for their leadership on this important issue.”