Tax Incentives for Taxpayers, Promoting Innovation and Dual Training Programs
Authors
Andrea Iturbide , Catalina Mandujano , Mario Barrera
On Jan. 21, the “Executive order that grants tax incentives to support the national strategy called “Plan Mexico” to encourage new investments, dual training programs, and promote innovation” (the “Decree”) was published in the Federal Register.
On Jan. 13, the President of the Republic presented a national strategy to increase the local supply and consumption of national products by 50% and the national content in global value chains in the automotive, aerospace, semiconductor sectors, and others, as well as to include mixed investment structures for infrastructure projects by 15%.
To achieve this, the President deemed it necessary to provide tax incentives to encourage foreign companies to relocate to Mexico and national companies to enter into value chains through this Executive order.
The Executive order mandates the creation of a committee responsible for evaluating investment projects into new fixed assets, dual education collaboration agreements, and investment projects leading to the development of inventions for obtaining patents or certificates. This committee will be composed of representatives from the Ministry of Economy [Secretaría de Economía], Ministry of the Treasury and Public Credit [Secretaría de Hacienda y Crédito Público], and the participation of the Regional Economic Development and Rellocation Advisory Council [Consejo Asesor de Desarrollo Económico Regional y Relocalización].
The Executive order affords the following incentives to legal entities subject to the general tax regime, simplified trust regime, and individuals with business or professional activities:
- Immediate deduction of investments made in new fixed assets, acquired from Jan. 21, 2025, through Sept. 20, 2030. The deduction may be claimed in the fiscal year where the investment is made and it will be equal to the amount resulting from applying to the investment amount, the rate set forth in the Executive order, which can be found in the Annex of this document.
- An additional deduction equivalent to 25% of any increase in expenses made for training workers in the relevant fiscal year or for expenses incurred in innovation. This incentive may be applied to the annual tax return for fiscal years 2025-2030.
This is not available for office furniture and equipment, automobiles powered by internal combustion engines, vehicle protection equipment, or any fixed asset that cannot be individually identified, nor to aircraft other than those dedicated to agricultural aerial fumigation.
Furthermore, taxpayers who intend to apply these tax incentives must meet certain requirements, such as being enrolled with the Taxpayers Registry, having a favorable compliance opinion, a compliance certificate issued by the committee, an investment project, investment project for the development of the invention or for initial certification, or a collaboration agreement related to dual education, along with any other requirements established by the committee.
Clark Hill PLC attorneys are available to assist you in determining whether the abovementioned incentives apply and to verify that the corresponding requirements are met. Please contact the Clark Hill PLC attorney you regularly work with or any of the following attorneys for assistance.
| Category | 2025-2026 | 2027-2030 |
| I. Fixed Assets by Type of Asset | ||
| a. Concerning Constructions | ||
| 1. Properties declared as monuments | 72% | 67% |
| 2. Other cases (includes installations and improvements) | 56% | 49% |
| b. Concerning railroads | ||
| 1. Fuel supply pumps for trains | 41% | 35% |
| 2. Railway tracks | 56% | 49% |
| 3. Railway cars, locomotives, and wagons | 60% | 54% |
| 4. Track leveling machinery, grinders | 64% | 58% |
| 5. Communication and signaling equipment | 72% | 67% |
| c. For vessels | 60% | 54% |
| d. Concerning airplanes | ||
| 1. Agricultural aerofumigation | 86% | 83% |
| e. Electric cars, buses, trucks | 86% | 83% |
| f. Computers and computing equipment | 88% | 85% |
| g. Dies, molds, stamps | 89% | 86% |
| h. Telephone communications | ||
| 1. Transmission towers and cables (not fiber optic) | 56% | 49% |
| 2. Radio systems (transmission, microwaves) | 67% | 62% |
| 3. Transmission equipment and routers | 72% | 67% |
| 4. Telephone switchboard equipment (non-electromechanical) | 86% | 83% |
| 5. Other telephone equipment | 72% | 67% |
| i. Satellite communications | ||
| 1. Satellite segment in space | 67% | 62% |
| 2. Ground satellite equipment | 72% | 67% |
| j. Electric bicycles and motorcycles | 86% | 83% |
| II. Machinery and Other Equipment | ||
| a. Electricity generation, transmission, and distribution | 56% | 49% |
| b. Metal, tobacco, coal production | 60% | 54% |
| c. Pulp, paper, and similar products manufacturing | 64% | 58% |
| d. Vehicle, machinery, and food product manufacturing | 67% | 62% |
| e. Leather tanning, chemical, and plastic products manufacturing | 70% | 65% |
| f. Electric transportation, hydrocarbon platforms | 72% | 67% |
| g. Textile products manufacturing | 74% | 69% |
| h. Mining industry, aircraft construction | 76% | 71% |
| i. Air transport, telegraph communication, and radio/TV stations | 80% | 76% |
| j. Restaurants | 83% | 80% |
| k. Construction industry, agricultural activities | 86% | 83% |
| l. New product and technology research | 89% | 86% |
This publication is intended for general informational purposes only and does not constitute legal advice or a solicitation to provide legal services. The information in this publication is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel. The views and opinions expressed herein represent those of the individual author only and are not necessarily the views of Clark Hill PLC. Although we attempt to ensure that postings on our website are complete, accurate, and up to date, we assume no responsibility for their completeness, accuracy, or timeliness.
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