On January 21, 2025, the Government of Mexico published a decree on fiscal incentives as part of the national strategy called “Plan Mexico.” Its objective is to encourage new investments, promote dual training, and promote innovation in the country.

Objective of the Decree

The decree seeks to encourage investment in Mexico, strengthen the national industry and generate more employment. To achieve this, tax benefits are granted to companies that invest in new fixed assets, participate in dual education programs or promote technological innovation.

Main Benefits

1. Immediate deduction of investments
   Companies that acquire new fixed assets will be able to deduct their investment in the same fiscal year in which it is made. This measure applies to machinery, equipment, infrastructure, transportation and communication technologies. It is valid until September 30, 2030.
2. Additional deduction for training and innovation expenses
   An additional 25 percent deduction is granted on the increase in training and technology development expenses. To access this benefit, companies must have an agreement with the Ministry of Public Education to implement dual education. Also included is a deduction for expenses associated with patents and initial certifications that allow companies to integrate into supply chains.
3. Funds allocated to MSMEs
   At least one billion pesos of the stimulus will be allocated to micro, small and medium-sized companies with annual revenues of up to 100 million pesos.
4. Creation of the Evaluation Committee
   A committee made up of representatives from the Ministry of Finance, the Ministry of Economy and the Advisory Council for Regional Economic Development and Relocation is established. This committee will validate the investment projects and issue certificates of compliance.

Requirements to Access the Incentives

To apply for these benefits, companies must meet certain requirements, including:

• Be registered in the Federal Registry of Taxpayers
• Have a positive opinion of tax compliance
• Submit investment projects or agreements with the Ministry of Public Education for dual education
• Have the certificate of compliance issued by the Evaluation Committee

Total Program Amount

The decree establishes a limit of 30 billion pesos in fiscal incentives, distributed as follows:

• 28.5 billion pesos for immediate investment deduction
• 1.5 billion pesos for the additional deduction in training and innovation

Conclusion

With this decree, the Mexican government seeks to strengthen the national economy through incentives that benefit both foreign companies that relocate to the country and national companies that integrate into value chains. Education and innovation play a key role in this strategy, ensuring that the Mexican workforce is highly qualified for the challenges of the future.

Companies interested in these benefits must comply with the established requirements and be aware of the guidelines that the Evaluation Committee will publish.

Source: Official Gazette of the Federation

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