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Mexico tax incentives: Plan México immediate deduction, border region decrees, R&D credit, IMMEX and maquila rules

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Last verified: 2026-10-26 · Status: Changing

The Plan México decree lets eligible companies deduct a fixed share (41 to 91 percent in 2025 and 2026, 35 to 89 percent from 2027) of new fixed assets in the year of purchase until 30 September 2030, plus an extra 25 percent deduction on increases in training and innovation spending, within a MXN 30 billion national cap and subject to approval by an evaluation committee. Businesses operating from premises in the northern and southern border regions can apply 8 percent VAT and a one third income tax credit through 31 December 2026, and companies with R&D projects can credit 30 percent of incremental R&D spending against income tax. Export manufacturers rely on IMMEX duty deferral, the VAT certification credit and the maquila safe harbor, which lower the cash cost of operating in Mexico.

USD conversions use MXN 18.5026 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 16 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Mexican tax law uses the Banxico FIX for foreign currency amounts, which differs slightly. Conversions are for orientation only.

Key facts

Plan México immediate deduction percentages, 2025 and 2026	41 to 91 %Plan México decree art. Segundo, as of 2026-10-26 · in force
Plan México immediate deduction percentages, 2027 to 2030	35 to 89 %Plan México decree art. Segundo, as of 2026-10-26 · in force
Plan México incentives available for investments until	2030-09-30 datePlan México decree art. Primero, as of 2026-10-26 · in force
Total Plan México tax incentives that can be authorized	30000000000 MXNPlan México decree art. Quinto, as of 2026-10-26 · in force
Extra deduction on increase in training or innovation spending	25 %Plan México decree art. Cuarto, as of 2026-10-26 · in force
Income tax credit in the border regions (share of tax due)	One third Border region decrees, extended to 31 December 2026 by decree DOF 31 December 2025, as of 2026-10-26 · in force
Reduced VAT rate in the northern and southern border regions (incentive decree)	8 %Border region decrees, extended to 31 December 2026 by decree DOF 31 December 2025, as of 2026-10-26 · in force
Border region decrees in force until	2026-12-31 dateDecree DOF 31 December 2025, arts. Primero and Segundo, as of 2026-10-26 · in force
R&D tax credit on incremental spending	30 %LISR art. 202, as of 2026-10-26 · in force

The rule

1. Plan México immediate deduction of new fixed assets. Companies taxed under Title II (or Title VII, chapter XII) of the income tax law and individuals with business activity may deduct, in the year of investment, a fixed percentage of the original cost of new fixed assets (first used in Mexico) acquired from the decree's entry into force until 30 September 2030, instead of normal depreciation. Requirements include RFC registration and an enabled tax mailbox, a positive tax compliance opinion, an investment project and a certificate of compliance from the Evaluation Committee. Percentages for 2025 and 2026 range from 41 to 91 percent and for 2027 to 2030 from 35 to 89 percent; for example computers and servers 88 percent (85 percent from 2027), dies, molds and tooling 89 percent (86 percent), machinery used to make motor vehicles and parts, metal products and machinery 67 percent (62 percent), and machinery in activities not otherwise listed 72 percent (67 percent). The rest of the cost is deducted only when the asset is sold, lost or stops being useful. Assets must remain in use for at least two years after the deduction. Office furniture and equipment, combustion engine cars, car armoring, non identifiable assets and aircraft other than crop dusters are excluded.
Cost to do it: No fee; the benefit is earlier deduction. The cost is the compliance project and committee approval.
Example: A manufacturer buys new machinery for MXN 100,000,000 in 2026 to make auto parts. It can deduct MXN 67,000,000 in 2026 instead of MXN 8,000,000 of normal depreciation at the 8 percent rate for that activity (LISR art. 35), deferring about MXN 17,700,000 of tax. / Machinery of about USD 5,404,646; first year deduction of about USD 3,621,113 and tax deferral of about USD 956,622 at 18.5026.Decreto por el que se otorgan estímulos fiscales para apoyar la estrategia nacional denominada "Plan México", para fomentar nuevas inversiones, que incentiven programas de capacitación dual e impulsen la innovación, DOF 21 January 2025, Arts. Primero, Segundo and Tercero, 2025-01-21 official text · verified 2026-10-26

2. Plan México training and innovation deduction and the cap. For fiscal years 2025 to 2030, eligible taxpayers may take an additional deduction equal to 25 percent of the increase in spending on technical or scientific training for their IMSS registered workers, or on innovation (projects leading to patents or initial certifications needed to join local or regional supply chains), over the average of the three prior years. The extra deduction is lost if not taken in the year of the spending and cannot create or increase a loss. Total incentives authorized are capped at MXN 30,000 million through 30 September 2030 (up to MXN 28,500 million for the immediate deduction and MXN 1,500 million for the extra deduction), with at least MXN 1,000 million reserved for taxpayers with prior year income up to MXN 100 million. Taxpayers on SAT lists of non located taxpayers or confirmed issuers of simulated invoices (or with such a shareholder), with firm unsecured tax debts, or in liquidation cannot apply.
Cost to do it: No fee; requires committee approval and specific records.
Example: A company spent an average of MXN 4,000,000 a year on training in 2023 to 2025 and spends MXN 10,000,000 in 2026. The increase is MXN 6,000,000, giving an extra deduction of MXN 1,500,000 worth MXN 450,000 of tax. / Increase of about USD 324,279; extra deduction of about USD 81,070 worth about USD 24,321 at 18.5026.Decreto por el que se otorgan estímulos fiscales para apoyar la estrategia nacional denominada "Plan México", para fomentar nuevas inversiones, que incentiven programas de capacitación dual e impulsen la innovación, DOF 21 January 2025, Arts. Cuarto, Quinto and Sexto, 2025-01-21 official text · verified 2026-10-26

3. Northern and southern border regions through 31 December 2026. Businesses that sell goods, provide services or lease goods from premises in the northern or southern border regions, with delivery or service there, can apply VAT at an effective 8 percent, and companies and individuals with business income in the regions can credit one third of income tax due, in proportion to their regional income, subject to registering with the SAT and meeting the decree conditions (for the income tax credit, at least 90 percent of total income from the region, excluding intangibles and digital commerce). The decree published on 31 December 2025 extended both decrees to 31 December 2026.
Cost to do it: No fee; registration notice with the SAT and annual compliance with the decree conditions.
Example: A Ciudad Juárez distributor registered under the decree sells MXN 10,000,000 and charges MXN 800,000 of VAT instead of MXN 1,600,000; with income tax of MXN 900,000 entirely from the region, it credits MXN 300,000. / Sales of about USD 540,465; VAT difference of about USD 43,237; income tax credit of about USD 16,214 at 18.5026.Decreto de estímulos fiscales región fronteriza norte, DOF 31 December 2018, and Decreto de estímulos fiscales región fronteriza sur, DOF 30 December 2020, as amended by the decree published in the DOF evening edition of 31 December 2025, Northern decree arts. Primero and Décimo Primero; decree of 31 December 2025 arts. Primero and Segundo, 2025-12-31 official text · verified 2026-10-26 · changed: Decree published in the DOF evening edition of 31 December 2025 extended the northern border decree (in force since 1 January 2019) and the southern border decree (since 1 January 2021), which were due to end on 31 December 2025, to 31 December 2026.

4. Research and development tax credit. Taxpayers that carry out R&D projects may credit 30 percent of the R&D spending and investment of the year against income tax of that year, applied only on the increase over the average of the three previous years. The credit is not taxable income; any excess can be carried forward ten years, but an amount that could have been used and was not is lost. Eligible spending must be made in Mexico on the taxpayer's own projects aimed at developing products, materials or production processes that represent a scientific or technological advance, under rules of an interinstitutional committee.
Cost to do it: No fee; requires application under the committee's rules and project documentation.
Example: A company's R&D spending averaged MXN 20,000,000 in the three prior years and is MXN 30,000,000 in 2026. The credit is 30 percent of the MXN 10,000,000 increase, MXN 3,000,000, against its 2026 income tax. / Incremental R&D of about USD 540,465; credit of about USD 162,139 at 18.5026.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 202, 2013-12-11 official text · verified 2026-10-26

5. Hiring workers with disabilities or aged 65 and over. Employers may deduct an additional amount equal to 25 percent of the wages paid to workers with qualifying motor, mental, hearing or speech disabilities of 80 percent or more, or who are blind, if they obtain the IMSS disability certificate for those workers; the same 25 percent extra deduction applies to wages paid to workers aged 65 or older. Employers using these incentives must meet their IMSS registration obligations (LSS art. 15).
Cost to do it: None; additional deduction.
Example: A company paying MXN 600,000 a year to qualifying workers deducts an extra MXN 150,000, saving MXN 45,000 of tax. / Wages of about USD 32,428; tax saving of about USD 2,432 at 18.5026.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 186, 2013-12-11 official text · verified 2026-10-26

6. Export manufacturing: IMMEX VAT credit and maquila safe harbor. Companies that bring goods in under IMMEX, bonded vehicle assembly, in bond processing or strategic bonded zone regimes may obtain a one year SAT certification that grants a credit equal to 100 percent of import VAT, so the VAT is not paid in cash; the credit is not taxable income. Maquiladoras that report taxable profit at least equal to the greater of 6.9 percent of the assets used in the operation or 6.5 percent of operating costs are deemed to comply with transfer pricing and their foreign principals are deemed not to have a permanent establishment in Mexico.
Cost to do it: Certification process and renewal within the 30 days before expiry; safe harbor tax at 30 percent on the deemed profit.
Example: An IMMEX plant imports MXN 200,000,000 of inputs a year. Without certification it would pay MXN 32,000,000 of import VAT in cash and wait to credit or recover it; with certification the credit covers it. / Inputs of about USD 10,809,292; import VAT cash flow of about USD 1,729,487 avoided at 18.5026.Ley del Impuesto al Valor Agregado (LIVA), DOF 29 December 1978 (Chamber of Deputies consolidated text, last reform DOF 12 November 2021), Art. 28-A; LISR art. 182, 1978-12-29 official text · verified 2026-10-26

Asset or activity	2025 to 2026	2027 to 2030
Buildings and constructions (general)	56 percent	49 percent
Trucks, buses, tractor trucks, forklifts, trailers and electric or hybrid cars	86 percent	83 percent
Computers, servers and network equipment	88 percent	85 percent
Dies, molds and tooling	89 percent	86 percent
Machinery for motor vehicles and parts, metal products and machinery, food and beverages	67 percent	62 percent
Machinery for chemicals, pharmaceuticals, rubber and plastics	70 percent	65 percent
Machinery for textiles and apparel	74 percent	69 percent
Machinery for mining, aircraft construction and land transport	76 percent	71 percent
Machinery for construction and agriculture	86 percent	83 percent
Machinery for research and technology development	89 percent	86 percent
Machinery for magnetic components and electronic cards for computing	91 percent	89 percent
Machinery in other activities	72 percent	67 percent

Selected Plan México immediate deduction percentages for new fixed assets (decree of DOF 21 January 2025, art. Segundo)

Worked example

A foreign auto parts supplier invests MXN 300,000,000 (about USD 16.2 million) in new molds and production machinery in Guanajuato in 2026, after obtaining the Evaluation Committee's certificate.
It deducts 89 percent of the molds and 67 percent of the machinery in 2026 instead of normal annual depreciation (35 percent for molds and 8 percent for auto parts machinery under LISR arts. 34 and 35), lowering its 2026 taxable profit sharply; the deferral improves cash flow in the years when the plant is ramping up.
It also increases training under a dual education agreement and claims an extra 25 percent deduction on the increase over its three year average, and operates under IMMEX with the VAT certification so import VAT on inputs is covered by the credit.

Step by step

1. Map planned capital spending through 2030 and match each asset to its Plan México percentage.
2. Confirm eligibility: positive tax compliance opinion, enabled tax mailbox, and no presence on SAT lists of non located taxpayers or simulated invoice issuers.
3. Prepare the investment project and, for training, the dual education agreement with the Ministry of Public Education, and apply to the Evaluation Committee before claiming.
4. Keep the specific register of each asset, its percentage and its use, and keep assets in use at least two years.
5. For border region operations, file the SAT notice and renew by the deadlines; plan for possible expiry on 31 December 2026.
6. For export manufacturing, obtain IMMEX and the VAT certification and document maquila profit against the safe harbor.

Common traps

Claiming without the committee certificate. The Plan México deduction requires the Evaluation Committee's certificate of compliance (decree art. Primero, section IV).
First come, first served cap. Total incentives are capped at MXN 30,000 million through 2030 (decree art. Quinto).
Selling the asset too early. Assets must stay in use at least two years after the immediate deduction (decree art. Primero).
Not using the extra training deduction in the year. It is lost if not claimed in the year of the spending (decree art. Cuarto).
Counting on the border decrees after 2026. The current extension ends on 31 December 2026 and covers one year only.
Losing the R&D credit by not applying it. Credit that could have been used and was not is lost (LISR art. 202).

Sources

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