# Mexico Film Incentive 2026: 30% Transferable Federal Tax Credit

Source: https://storiara.com/incentives/mexico
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Mexico has had a federal production incentive since February 2026. A decree published on 16 February 2026 grants a tax credit of up to 30% of the total cost of a film or audiovisual project carried out in Mexico, capped at MXN 40 million per production. The credit can be sold to Mexican suppliers and income taxpayers. Narrative and animated features must spend at least MXN 40 million, and the program runs to 30 September 2030.

The decree's preamble explains why Mexico chose a credit. Countries such as Colombia, Uruguay, the Dominican Republic, and Brazil fund cash rebates with direct budget allocations, and the Mexican government said other priorities made that hard. So the stimulus is a credit against income tax (ISR) that the producer can sell, spend with suppliers, or use itself. The total the Committee can authorize is MXN 400 million a year until 30 September 2030.

Before February 2026, the federal incentive on offer was [EFICINE](https://www.imcine.gob.mx/eficine), the Article 189 credit for investors in Mexican films, and it isn't built for incoming productions. Older guides that say Mexico has no production incentive predate the decree.

## Who decides and what they look for

A Technical Committee chaired by the Undersecretary of Revenue at SHCP, with IMCINE's director voting and the Culture Ministry's Undersecretary of Cultural Development speaking but not voting, reviews projects and sets the percentage each one gets. It meets at least four times a year. The guidelines list five criteria:

- Suppliers: at least 70% resident in Mexico
- Budget: eligible direct and indirect costs identified
- Territorial: at least 70% of shoot days or eligible spend outside the Valle de México, Monterrey, and Guadalajara metro areas
- Cultural: based on Mexican literary or historical works, portraying Mexican traditions or languages, preserving heritage, a significant artistic contribution, or a Mexican director
- Training: trainees, workshops, mentoring, or knowledge transfer with local talent

Projects that meet the territorial, cultural, and training criteria can get the maximum percentage.

## Minimum spend

| Project type | Minimum spend in Mexico |
|---|---|
| Narrative or animated feature; each episode of a narrative or animated series | MXN 40 million |
| Documentary feature or documentary series | MXN 20 million |
| Animation, VFX, or post-production process | MXN 5 million per process |

## Worked example: $1,000,000 doesn't qualify

Using ECB reference rates for 11 September 2026 (EUR 1 = USD 1.1592 and EUR 1 = MXN 19.6798, so USD 1 = about MXN 16.98), $1,000,000 is about MXN 16,980,000. That's under the MXN 20 million documentary floor and the MXN 40 million feature floor. A VFX or post package of MXN 5 million or more could qualify on its own as a process.

## Worked example: $5,000,000 feature in Oaxaca and Yucatán

$5,000,000 is about MXN 84,890,000. The production spends MXN 60,000,000 in Mexico, 80% of shoot days outside the three metro areas, with a trainee program and more than 70% Mexican suppliers. Assume the Committee grants the full 30%.

- Credit: MXN 60,000,000 x 30% = MXN 18,000,000, under the MXN 40 million cap
- Sale to other income taxpayers: at most 70% of the credit, MXN 12,600,000 face value
- Maximum price for that block: 85% x MXN 12,600,000 = MXN 10,710,000 in cash
- Remaining MXN 5,400,000: transferred to Mexican suppliers as eligible costs are paid (indirect suppliers can take no more than 30% of the total credit, MXN 5,400,000) or applied against the producer's own ISR

The amount received from selling the credit is taxable income for the producer. The cap starts to bite at MXN 133.3 million of spend: MXN 150,000,000 x 30% = MXN 45,000,000, reduced to MXN 40,000,000.

## Filing, step by step

1. From pre-production or during the shoot, file a written application in Spanish with the Ventanilla Única at SHCP, in person at Palacio Nacional or as PDFs to EFICA@hacienda.gob.mx (20 MB per file).
2. Include project value, spend in Mexico by supplier with contracts or letters of intent for at least 50% of eligible costs, schedule, synopsis, script, director's proposal, visuals, production plan with a monthly critical path, budget, and any cultural elements.
3. The Technical Secretary checks the file within 10 business days. You get 5 business days (plus 3 on request) to fix gaps.
4. IMCINE assesses viability, and the Committee meets within 15 business days to decide on the filing certificate (constancia de presentación de trámite). No certificate within 5 business days of that session counts as a refusal.
5. Within 30 calendar days of finishing, notify the completion date, final copy format, and where the master is stored.
6. File for the certificate of compliance with a report from a SAT-registered public accountant certifying total cost, eligible spend, 70% national suppliers, and planned transfers.
7. Once the certificate of compliance is issued, make the credit transfers within that same fiscal year.

## Watch-outs

- The Committee sets the percentage. Budget at a lower rate until the certificate is in hand.
- MXN 400 million a year covers only ten projects at the MXN 40 million cap, so apply early in the year.
- If you don't apply or transfer the credit when you're able to, you lose the right to do it later.
- Buyers can't be related parties of the producer, now or in the prior fiscal year.
- End credits must acknowledge the Government of Mexico's fiscal stimulus in a visible section.

## Nearby options

[Colombia](https://storiara.com/incentives/colombia) has a cash rebate and a transferable certificate with lower minimum spends. North of the border, [New Mexico](https://storiara.com/incentives/us/new-mexico) and [Texas](https://storiara.com/incentives/us/texas) are the usual comparisons for productions that might shoot either side. A [transferable tax credit](https://storiara.com/glossary/transferable-tax-credit) always trades at a discount; [transferable vs refundable tax credits](https://storiara.com/blog/transferable-vs-refundable-tax-credits) goes through how that discount affects the finance plan.

## Frequently asked questions

### Does Mexico have a film tax incentive in 2026?

Yes. Before 2026 the main federal tool was EFICINE, an income tax credit for investment in Mexican films. The Decree published in the Diario Oficial on 16 February 2026 created a transferable tax credit of up to 30%, and the Technical Committee published its guidelines on 30 March 2026.

### What is the minimum spend for Mexico's film tax credit?

MXN 40 million for a narrative or animated feature, and per episode of a narrative or animated series. MXN 20 million for a documentary feature or documentary series. MXN 5 million per process for animation, VFX, or post-production.

### Can a foreign production use the Mexican credit?

Yes, but a foreign resident without a permanent establishment in Mexico must produce through a Mexican-resident production company, and at least 70% of suppliers must be Mexican residents.

### Can I combine it with EFICINE?

No. The decree excludes taxpayers who apply the Article 189 income tax stimulus, which is the EFICINE program for Mexican film investment.

### How much of the Mexican credit can be sold for cash?

It can be transferred to Mexican suppliers tied to the production (indirect suppliers at most 30% of the credit). Up to 70% of the credit can be sold to other income taxpayers at a price no higher than 85% of face value, and no buyer can take more than 15% of its prior-year taxable profit.

## Sources

- [Diario Oficial de la Federación: Decreto por el que se otorga un estímulo fiscal a la producción cinematográfica y audiovisual (16 February 2026)](https://dof.gob.mx/nota_detalle.php?codigo=5780237&fecha=16/02/2026)
- [DOF 30 March 2026: Lineamientos para aplicar el Decreto (PDF via IMCINE)](https://www.imcine.gob.mx/media/2026/3/dof-acuerdoporelqueseemitenloslineamientosparaaplicareldecretoporelqueseotorgaunestimulofiscalalaproduccioncinematograficayaudiovisual-file_69cae444e0327.pdf)
- [IMCINE: EFICINE](https://www.imcine.gob.mx/eficine)
- [European Central Bank: euro foreign exchange reference rates (EUR/MXN and EUR/USD)](https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html)