New tax incentive for film and audiovisual production

On February 16, 2026, a tax incentive for film and audiovisual production was published in the Official Gazette of the Federation, consisting of a tax credit of up to 30% of the total cost of the film or audiovisual production project or process carried out in national territory, valid until September 30, 2030.

What is it about?

A tax credit of up to 30% of the total cost of the film or audiovisual production project or process, carried out in national territory, which may not exceed

$40,000,000.00 per production and per beneficiary subject.

The total cost of the project or process will consist of the expenses related to the stages of development, pre-production, production, post-production and final delivery of the work, effectively carried out in national territory, which are essential for the material, technical, creative and logistical realization of the project.

A film production project is considered to be the set of creative, technical, logistical and financial activities carried out in Mexico intended to develop, produce or complete feature-length film works, whose natural outlet and primary purpose is exhibition in movie theaters, without prejudice to their subsequent circulation in other windows.

An audiovisual production project is understood to be the set of creative, technical, logistical and financial activities carried out in national territory intended to develop, produce or complete audiovisual works, including, among others, feature films, series, miniseries, animation, projects intensive in visual effects and post-production, and other formats that the applicable guidelines determine, whose primary output is not exhibition in movie theaters, regardless of the medium, support or platform through which they are disseminated or exploited.

Who can apply it?

Individual or legal taxpayers, residents in Mexico, residents abroad with a permanent establishment in the country, as well as residents abroad without a permanent establishment in Mexico, dedicated to film or audiovisual production, who carry out productions in national territory.

How does it apply?

The tax credit may be transferred for consideration in full to domestic suppliers directly related to production in order to incentivize the supply chain, without in any case the indirect expenses incurred with said

suppliers, exceed 30% of the total amount of said tax credit; or it may be transferred for consideration to income tax payers who are not part of the supply chain.

The subjects benefiting from the incentive must not be related parties of the subjects to whom the tax credit is transferred, nor have been so, in the immediately preceding fiscal year.

If there is a remaining balance or if it has not been transferred, it may be applied by the taxpayer against their tax due in the fiscal year or in provisional payments.

• What requirements are nedeed to fulfill?

• Be registered in the Federal Registry of Taxpayers and have the tax mailbox enabled.

• Have a positive and current opinion on compliance with tax obligations.

Submit the film or audiovisual production project or process, in accordance with the guidelines issued by the Technical Committee (which are pending publication).

• Make expenditures within the national territory to execute the film or audiovisual production project or process.

• That the film or audiovisual production project or process has at least 70% national suppliers.

• Have the proof of submission of the procedure issued by the Technical Committee for the application to apply the tax incentive of this instrument.

• Obtain the certificate of compliance issued by the Technical Committee for the completion of the film or audiovisual production.

• Comply with the provisions of the aforementioned guidelines.

Those who will not be able to apply for the incentive include, among others, those who are published on the lists of non-compliant taxpayers referred to in article 69-B of the Federal Tax Code, are in liquidation, have their digital seals suspended or cancelled, or have applied the “EFICINE”.

Other considerations.

• The guidelines are still pending publication by the Technical Committee; however, they must be published within a period of no more than 30 business days from the publication of the incentive.

• The Tax Administration Service is also empowered to issue any necessary general rules.