Sheinbaum Offers Tax Deductions to Spur Mexico’s Nearshoring (1)

President Claudia Sheinbaum’s administration will offer greater enticements for companies seeking to relocate their manufacturing operations to Mexico to be closer to the US market, including generous tax incentives, according to a presidential decree.

The decree provides fiscal incentives “to support the national strategy called ‘Plan Mexico’, to foment new investments, encourage dual training programs and drive innovation,” according to the order that was published in the official gazette on Tuesday.

The decree allows deductions of up to 91% for investments in fixed assets, with larger benefits offered through 2026. Eligible items include electric cars, train cars, airplanes for ...