The incentive exists, but the percentage is not universal
The decree published in Mexico’s Official Gazette on January 21, 2025 established an immediate-deduction framework for new investments. The Ministry of Finance summarizes the applicable percentages as 41% to 91% for investments made in 2025 and 2026, and 35% to 89% for assets acquired between 2027 and 2030.
The range is broad because there is no single rate for every asset.
The percentage depends on the categories and activities described in the decree. It would therefore be incorrect to say that “the Mexico Plan allows a 91% deduction for any machinery.” The analysis must begin by identifying the asset, economic activity, fiscal year of the investment, and requirements applicable to the taxpayer.
For finance and operations leaders, the useful question is not the highest percentage available, but which percentage applies to the specific investment the company is evaluating.
Training and innovation are also part of the framework
The decree includes a second mechanism: an additional deduction equal to 25% of the increase in spending on employee training or certain innovation expenses during fiscal years 2025 through 2030.
This point connects directly with an industrial modernization problem: buying technology and developing the ability to use it are different decisions, but they must move forward together.
A company can invest in machinery, automation, servers, or digital infrastructure and still fail to obtain the expected value if its teams lack the processes, knowledge, and responsibilities needed to integrate those assets into the operation.
The tax incentive does not remove that dependency. It can, however, be incorporated into a more complete assessment of modernization costs.
Documentation is also part of the investment
Access to the incentives does not depend only on purchasing an asset.
The decree and related tax rules require documentation and compliance. Among other elements, the company must be able to substantiate the acquisition, identify the asset, demonstrate its relationship to the business activity, and retain the corresponding records.
This makes documentary traceability part of the investment project.
For an industrial organization, the decision should connect at least four layers:
- operational need;
- technical specification;
- financial model;
- tax documentation and compliance evidence.
When these layers are reviewed separately, an investment can move forward without finance understanding all technical requirements or without operations considering the tax effect within total cost.
An incentive does not replace the business case
A deduction can improve the tax cash flow of an investment. By itself, it does not prove that the asset is necessary, that it will solve the expected problem, or that it will generate a specific return.
The company still needs to answer:
- what operational problem it intends to solve;
- what new capability it needs;
- the total cost of acquisition, integration, and maintenance;
- what additional infrastructure it requires;
- who will be responsible for operating and validating the change;
- how the result will be measured.
The incentive should then be incorporated into that equation, not replace it.
The tax opportunity can change the cost of modernization. The operational reason to modernize still has to exist.
What an industrial company should review
Before incorporating the Mexico Plan into a budget, it helps to separate three questions.
1. Is the investment technically necessary?
Operations and engineering should justify the capability, equipment, or infrastructure before optimizing its tax treatment.
2. Do the asset and taxpayer meet the applicable conditions?
The asset classification, fiscal year, line of business, and decree requirements should be reviewed with the tax team or a specialist.
3. Is there sufficient evidence to support the application?
Invoices, accounting records, receipts, and documentation of asset use should be part of the project from the beginning, not reconstructed later.
Frequently asked questions
Does the Mexico Plan allow a 91% deduction for any machinery?
No. The decree establishes different percentages depending on the type of asset and activity. For 2025 and 2026, the general range published by the Ministry of Finance is 41% to 91%, but the applicable percentage must be determined case by case.
Is the incentive still available after 2026?
Yes. The decree provides immediate deductions for assets acquired through September 2030, with different percentages for the 2027–2030 period.
Is there an incentive related to training?
Yes. For fiscal years 2025–2030, an additional deduction equal to 25% of the increase in certain training or innovation expenses is contemplated, subject to the corresponding requirements.
Does this Insight replace tax advice?
No. It explains the public framework and its industrial relevance. Its application to a specific company, asset, or fiscal year must be validated by tax specialists and against current regulations.
Sources
- Ministry of Finance and Public Credit. “Under the Mexico Plan — Tax Incentives.” Decree framework and general percentages. https://www.estimulosfiscales.hacienda.gob.mx/es/efiscales_mediante_decreto/Plan_Mexico
- Official Gazette of the Federation. “Decree granting tax incentives to support the national strategy known as the Mexico Plan.” January 21, 2025. https://sidof.segob.gob.mx/notas/docFuente/5747410
- Nacional Financiera. “Mexico Plan.” March 12, 2026. Information on complementary financing for MSMEs. https://www.gob.mx/nafin/acciones-y-programas/plan-mexico-421359