The measure, published Monday in the country’s Official Gazette, allows producers to claim a tax credit of up to 30% of project expenses incurred in Mexico, with the stated goal of boosting local production, creating jobs and ensuring foreign shoots hire Mexican talent and services, News.Az reports, citing foreign media.
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Mexican President Claudia Sheinbaum presented the initiative at a public event Sunday attended by actor and producer Salma Hayek, who had sought support for the initiative.
“It is necessary to have incentives for cinema, to find ways to encourage more filming in Mexico. That includes international productions, but especially national filmmaking, particularly independent projects,” Sheinbaum said.
The core of the plan is a federal income tax credit for audiovisual productions filmed in Mexico. The incentive can cover up to 30% of eligible local spending per project, capped at 40 million Mexican pesos, about $2.5 million, local business newspaper El Economista reported.
To qualify, productions must source at least 70% of goods and services domestically and include participation from a Mexican production company, even when projects are backed by foreign studios.
Hayek welcomed the initiative during the presentation ceremony, saying Mexico offers unique advantages for the audiovisual industry. She said the program could stimulate tourism, investment and cultural employment while promoting Mexican storytelling globally.
The initiative coincides with broader industry investment trends. According to El País, Netflix strengthened its commitment to Mexico in February 2025. Co-CEO Ted Sarandos said the company plans to invest $1 billion over four years to produce films and series in the country, aiming to support industry growth and job creation.
The tax incentive also forms part of a broader policy push.
The government recently introduced a proposed Federal Film and Audiovisual Law to update legislation in place since 1992. The reform seeks to modernize the sector, adopt a cultural rights framework and increase the presence of Mexican films in theaters through a proposed minimum 10% exhibition quota, longer theatrical runs and measures to improve visibility on digital platforms.
The draft legislation also calls for expanded public funding and incentives for audiovisual production, with emphasis on independent projects, and proposes safeguards for voice actors against unauthorized artificial intelligence use.
These include consent requirements, fair compensation rules and penalties for unauthorized use of voice or image. Officials say the broader strategy aims to position Mexico as an international audiovisual production hub while strengthening cultural output created within the country.
