Mexico has announced a plan to support its national film industry with measures including a new 30% tax incentive for both homegrown and incoming productions.
The plan, which also provides support for training, production, exhibition and preservation sectors in the country’s industry, was announced by Mexican president Claudia Sheinbaum and Mexican actress, producer and director Salma Hayek.
The new incentive will offer a 30% income tax credit on a project’s expenditures in Mexico, up to a maximum of 40m Mexican pesos ($2.3m) per project. For a project to qualify for the incentive, at least 70% of its suppliers must be Mexican.
Incentives will be available to Mexican individuals and legal entities as well as non-Mexican individuals and entities with a permanent establishment in the country or who produce through a Mexican resident or legal entity.
Live action and animated features and series episodes must spend at least 40m Mexican pesos ($2.3m) and documentary features and series at least 20m pesos ($1.2m). Also eligible will be specific animation, visual effects, or post-production processes with a minimum spend of 5m pesos ($290,000).
Unveiling the programme along with President Sheinbaum, Hayek said Mexico has “a long and distinguished cinematic legacy and a film industry that is truly world-class, home to some of the most talented and creative artists and technicians I have ever had the privilege of working with. I’m excited that this incentive will help shine an even brighter light on all of this and continue to strengthen and grow this extraordinary film community.”
Announcement of the new incentive comes almost exactly a year after Netflix announced a plan to spend $1bn in Mexico over the next few years. Features backed by the streamer and shot in Mexico include Alfonso Cuaron’s Oscar winner Roma and upcoming Diego Luna comedy Mexico 86.
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