Friday, July 26, 2024

Nuevo León to offer new tax incentives to encourage nearshoring

Nuevo León Governor Samuel García has announced tax incentives for companies investing in the border municipalities of Anáhuac or Puerto Colombia, as part of new measures to attract nearshoring investment.

This region is home to the Cross-Border Solidarity Bridge that connects Nuevo León with Laredo, Texas.

View this post on Instagram

 

A post shared by Samuel García (@samuelgarcias)

The incentives include exemptions from the Value Added Tax VAT and Income Tax (ISR), as well as discounts on payroll and property taxes. Investors will also receive support when filing digital paperwork.

“We are very happy! Like Oaxaca and Veracruz, Nuevo León will have a hub for automotive and electromobility industrial development in Anáhuac,” García shared on his Instagram account.

The governor also said that the incentives will allow the Colombia-Solidaridad Bridge to expand from eight to 16 crossings, and said the inauguration of the Gloria Colombia highway, connecting Monterrey with the city of Nuevo Laredo, is approaching.

“We will boost the north of Nuevo León and create more industrial parks. Let’s keep growing! And let the ‘nearshoring’ continue,” he said in a statement.

This isn’t the first time García has announced tax incentives to fuel nearshoring.

In December, García’s government agreed to provide Tesla with US $153 million of incentives to facilitate the construction of their much-anticipated “gigafactory” in Santa Catarina.

These incentives include electricity, water, and transport infrastructure and tax breaks reduction to encourage job creation.

García claims that Tesla is likely to commence construction in the first quarter of this year.

According to Mexican market analysis firm Solili, Monterrey was the top-ranked city in Mexico for construction growth during 2023, which the firm credited to nearshoring.

With reports from El Economista, Milenio and Vanguardia

Have something to say? Paid Subscribers get all access to make & read comments.
An Audi car body on a production line in a factory in Mexico

Mexican auto parts industry unshaken by Tesla gigafactory news

0
"This has more to do with the global electric vehicles market falling below projections ... Tesla is seeing its market shrink," said the chief of the Mexican Auto Dealers Association.
Mexican and Chinese business people at Hofusan Industrial Park

Chinese investment in Mexico has risen fast, but still lags behind other FDI

1
Over half of total Chinese FDI in Mexico since 2006 has been made since 2020, but according to official data, it's still a fraction of U.S. and European FDI.
Image of US currency bills of various denominations in a chaotic pile surrounding a one-peso coin in the center of the pile

Peso slides after Tesla setback and inflation spike

7
New inflation data, a reform bill and Tesla pausing a Mexico gigafactory may explain a 1.5% drop overnight in the peso-USD rate Wednesday.