As part of the “Plan México” presented this year by the Mexican Government, on May 22, 2025, a Decree to grant Tax Incentives within the Welfare Economic Development Clusters, (the “Decree”), together with the Accord that establishes the Guidelines for the Welfare Economic Development Clusters, (the “Accord”), were published in the Official Gazette of the Federation.
With the publication and implementation of the Decree and the Accord, and taking into account the current context of the nearshoring, Mexico reaffirms its commitment in promoting and emphasizing the role of the Welfare Economic Development Clusters (the “Clusters”) as industrial centers with strategic locations that, among other priority objectives: (i) will promote local and foreign investment in specific infrastructure, industrial developments and community projects; and (ii) will encourage strategic alliances between the private sector and the three levels of government.
One of the most important advances brought by “Plan México” and particularly by the Decree, is the best use of the Clusters, allowing States and Municipalities to propose the locations to establish such Clusters, which will enhance and promote regional economic activity, local job creation, sustainable development, circular economy and return on investments.
Among the tax benefits that will be granted in the Welfare Development Poles are:
- Immediate deductions of 100% of the original amount of the investment in new fixed assets, obtained from the effective date of the Decree through September 30, 2030, that are used in their productive activities, or those new fixed assets related to the developers´ activities carried out within the Clusters, and
- An additional 25% deduction for incremental expenses related to technical or scientific training or innovation projects for income tax purposes.
Lastly, private developers who invest in infrastructure projects within the Clusters must: (i) possess experience in large-scale infrastructure projects; (ii) implement a program with the estimated investments in the corresponding Cluster; and (iii) prove the economic solvency for the specific project.
For any additional information, please contact:
Juan Carlos Izaza
Counsel
Alberto Díaz de León
Counsel
