Decree Granting a Tax Incentive for Film and Audiovisual Production.

February 26, 2026

On February 16, 2026, the “Decree Granting a Tax Incentive for Film and Audiovisual Production” was published in the Official Gazette of the Federation (Diario Oficial de la Federación). The decree introduces an incentive aimed at strengthening Mexico’s competitiveness as a production hub and at fostering job creation and domestic supply chains.

The decree provides for a tax credit of up to 30% of the total cost of the project or production process carried out in Mexico, capped at MXN $40 million per project and per beneficiary, with an annual aggregate limit of MXN $400 million. The incentive will remain in force until September 30, 2030.

A key feature of the incentive is that the tax credit may be transferred for consideration (in whole or in part), with the purpose of promoting the value chain. In order to qualify, applicants must meet certain tax compliance requirements and operational conditions, including, among others, that the project engage at least 70% domestic suppliers.

Additionally, the decree creates a Technical Committee (Ministry of Finance/IMCINE/Ministry of Culture) to evaluate applications and issue compliance certificates and provides for the issuance of implementing guidelines within 30 business days.

This incentive represents a meaningful tool to improve the financial structure of projects by reducing the effective cost of production and facilitating financing schemes through the potential transfer of the tax credit. For platforms, studios, and producers, it may translate into greater budget feasibility and an additional incentive to produce in Mexico.

At the same time, it strengthens the domestic supply chain and the development of specialized talent, further consolidating Mexico’s audiovisual ecosystem and positioning the country as a more competitive destination compared to other markets that already offer similar incentives.

At OLIVARES, we have extensive experience advising companies in the audiovisual sector on the legal and contractual structuring of their projects, regulatory compliance, and strategies to maximize incentives. We can assist with eligibility analysis, the design of credit transfer structures, implementation of compliance controls and risk mitigation strategies, as well as a comprehensive review of contracts and operations to ensure this incentive is leveraged efficiently and securely.