Mexico has launched a tax incentive for film and audiovisual production, offering credits of up to 30% of project costs with set investment thresholds. The decree allows credit transfers to suppliers or other taxpayers and will remain in effect until 30 September 2030.

Mexico has published a decree granting a tax incentive for film and audiovisual production in the Official Gazette on 16 February 2026. The government aims to align its creative industry with international standards, including cash rebates and tax credits used in countries such as Colombia and Brazil. The initiative seeks to foster a sustainable cultural ecosystem, create specialised employment, and leverage Mexico’s geographic position to produce content for global audiences.

Fiscal stimulus
The decree provides a tax credit of up to 30% of the total cost of a project or production process conducted in Mexico. The credit is capped at 40 million per project and per beneficiary. The Technical Committee may approve up to MXN 400 million annually for this stimulus across all applicants.

Eligibility and minimum investment
The incentive applies to Mexican residents (individuals or corporations) and foreign residents, with or without a permanent establishment in the country. Eligible projects must meet minimum spending thresholds in Mexico:

  • Narrative features or series: Minimum investment of MXN 40 million.
  • Documentaries: Minimum investment of MXN 20 million.
  • Animation, VFX, and post-production: Minimum investment of MXN 5 million per process.
  • National supply requirement: At least 70% of project suppliers must be national.

Transferability of credit
The decree allows the tax credit to be transferred to stimulate the local economy:

  • To suppliers: Transferable at 100% of its value to national suppliers directly involved in the production.
  • To third parties: Transferable for a fee to other Income Tax (ISR) taxpayers, with a limit of 85% of the nominal value.
  • Direct application: Any remaining credit can be applied by the producer against their own ISR.

Administration and exclusions
A Technical Committee, consisting of representatives from the Ministry of Finance (SHCP), the Ministry of Culture, and the Mexican Institute of Cinematography (IMCINE), will evaluate projects and issue certificates of compliance.

Exclusions apply to taxpayers who:

  • Already benefit from the EFICINE stimulus (Article 189 of the Income Tax Law).
  • Are listed by the tax authority (SAT) for non-existent operations or outstanding tax debts.
  • Are in liquidation or have had their digital seals restricted.

The decree entered into force the day after publication and will remain active until 30 September 2030.