On January 21, 2025, the Government of Mexico published a tax incentives decree as part of the national strategy known as «Plan Mexico.» The goal is to promote new investments, strengthen dual education programs, and foster innovation across the country.

Objective of the Decree

The decree aims to encourage investment in Mexico, boost national industry, and generate more jobs. To achieve this, tax benefits are granted to companies that invest in new fixed assets, participate in dual education programs, or drive technological innovation.

Key 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. The program will remain in effect until September 30, 2030.
2. Additional Deduction for Training and Innovation Expenses
   Companies will receive an additional 25 percent deduction on the increase in training and technology development expenses. To qualify, companies must have an agreement with the Ministry of Public Education (SEP) to implement dual education programs. This benefit also applies to expenses related to patents and initial certifications that allow companies to join local and regional supply chains.
3. Funds Allocated to Small and Medium Enterprises (SMEs)
   A minimum of one billion pesos from the tax incentives will be allocated to micro, small, and medium enterprises (SMEs) with annual revenues of up to 100 million pesos.
4. Creation of the Evaluation Committee
   A committee will be established, composed of representatives from the Ministry of Finance, the Ministry of Economy, and the Advisory Council for Regional Economic Development and Relocation. This committee will evaluate investment projects and issue compliance certificates.

Requirements to Access the Incentives

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

• Being registered in the Federal Taxpayer Registry (RFC)
• Having a positive tax compliance opinion
• Presenting an investment project or an agreement with the Ministry of Public Education for dual education
• Obtaining a compliance certificate issued by the Evaluation Committee

Total Program Budget

The decree sets a total cap of 30 billion pesos in tax incentives, distributed as follows:

• 28.5 billion pesos for the immediate deduction of investments
• 1.5 billion pesos for the additional deduction for training and innovation expenses

Conclusion

Through this decree, the Mexican government aims to strengthen the national economy by providing incentives that benefit both foreign companies relocating to Mexico and national companies integrating into supply chains. Education and innovation play a crucial role in this strategy, ensuring that Mexico's workforce is highly qualified for future challenges.

Companies interested in these benefits must comply with the established requirements and stay informed about the guidelines that the Evaluation Committee will publish.

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