Plan México pledges tens of billions of pesos in infrastructural and educational investments alongside massive tax incentives meant to invite and foster new industry throughout the country. Many of these benefits apply nationwide, while others are tied to particular regions of opportunity; all, however, are worth the attention of manufacturers weighing a new investment in Mexico.

Proximity to the U.S. market and exemption from its harshest tariffs has led Mexico to receive record-breaking quantities of foreign direct investment (FDI) over the past several years. The Mexican government is naturally eager to reinforce such a trend by incentivizing and accommodating foreign-funded industry. Plan México—President Claudia Sheinbaum's six-year strategy for developing the nation's economy and general wellbeing—was put in motion this past January to do precisely that.

Plan México pledges tens of billions of pesos in infrastructural and educational investments alongside massive tax incentives meant to invite and foster new industry throughout the country. Many of these benefits apply nationwide, while others are tied to particular regions of opportunity; all, however, are worth the attention of manufacturers weighing a new investment in Mexico.

Manufacturers who align their strategy with these initiatives can cut cost bases, streamline logistics, and access infrastructure that is being purpose-built to sustain a modern and growing industrial complex—all by breaking ground in the right place at the right time. What follows is a manufacturer's guide to taking advantage of Plan México.

Nationwide Incentives: A Baseline for Cost Reduction
A core feature of Mexico's development plan is incentivizing long-term capital formation and a competitive workforce across the nation. These incentives are not tied to particular high-priority regions, meaning that any company in any region can take advantage by investing in the productive sector—a sort of baseline cost reduction for manufacturers of all industries and sizes.

One such incentive is the provision for deductible fixed-asset investments, which allows manufacturers to write off 100% of new machinery and equipment in the first year—so long as those assets are to operate in Mexico. This translates to immense reductions in taxable income for essentially any long-term manufacturing investment. New manufacturing plants that are just ramping up production can offset a major portion of their tax burden, freeing up much-needed cashflow for quick and aggressive expansion.

In addition to fixed-asset deductions, the Mexican government is also offering nationwide federal tax credits for workforce training. This effort is designed to strengthen Mexico's labor pipeline and develop a skilled workforce capable of advanced manufacturing on a large scale. Manufacturers who sponsor apprenticeships, provide accredited technical instruction, or partner with state polytechnic universities are rewarded with credit to be repaid via the federal tax return. The real cost of training is significantly reduced while manufacturers invest in a well-educated labor force that will serve them for years to come.

The CIIT: Mexico's Most Incentivized Region
Plan México's nationwide incentives lay a broad foundation for cost-effective production. Atop that foundation, however, are several layers of regional opportunity that manufacturers can capture by merely choosing the right locale. These benefits are centered in the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT), which spans Oaxaca and Veracruz and which has long acted as a land bridge between the Pacific Ocean and the Gulf.

The corridor includes 10 designated industrial development hubs (Polos de Desarollo) situated between the ports of Salina Cruz and Coatzacoalcos. Mexico envisions a modernized, multi-modal logistics and production ecosystem across the CIIT, and the federal government has initiated several very significant incentives to bring the idea to fruition.

Perhaps the largest monetary incentive offered within the CIIT is a full corporate income tax exemption—literally 0%—for the first three years. This is followed by steeply reduced rates—a 50% to 90% reduction on the 30% corporate income tax—for the next three, depending on how many jobs the operation creates.

The CIIT also offers non-monetary incentives that are no less significant. Industrial lots within the 10 development hubs are guaranteed access to crucial utilities including water, electricity, natural gas, and waste-treatment services—greatly reducing the risk of downtime. Priority access to upgraded freight infrastructure, which includes a rehabilitated trans-isthmus rail line and modernized port facilities, can substantially lower logistical overhead at the same time.

Other Regional Incentives
While the CIIT is home to Mexico's biggest benefits, several other regions offer their own incentives for new investment. Operations in non-CIIT southern states like Chiapas and Tabasco are still eligible for workforce development programs, training credits, and select infrastructure support, but do not enjoy the CIIT's corporate income-tax holidays. The northern border states, meanwhile, benefit from accelerated customs modernization efforts, IMMEX mechanisms, and USMCA-related incentives.

Strategic Alignment, Visualized
Say that a hypothetical tier-two U.S. automotive supplier is considering a new plant in Mexico. After thorough research into both nationwide and local incentives, they choose to invest $12 million into a CIIT industrial park. They then deduct 100% of the new automated assembly equipment that they implement while ramping up production—a nationwide incentive—while paying 0% corporate income tax for three years—a local incentive. Their new location grants them access to the Atlantic-Pacific rail route and cuts their shipping times from seven days down to two. Guaranteed utilities reduce downtime by 15%, as a bonus, and the net result is a 22% drop in operating costs for the first five years of production.

Bottom Line
Manufacturers nearshoring or expanding into Mexico share a common goal with the nation's government: fostering investments for long-term success. Plan México is largely an offer by President Sheinbaum's administration to partner with investors; now it is up to manufacturers around the globe to take it. Aligning their strategy with the incentives discussed here—nationwide, local, monetary, or logistical—will mean gaining a powerful ally that can compound the benefits which have brought Mexico to this point, making investments even more profitable in even less time.

By Jorge Gonzalez Henrichsen