Tamaulipas to Attract $4.623 Billion in Nearshoring Incentives

Tamaulipas' Ministry of Economy (SE) envisions the attraction of up to $4.623 billion in foreign direct investment (FDI) with the implementation of the new federal decree of incentives for nearshoring.

In a press release, it was disclosed that there are 43 projects in the pipeline, focusing on industries such as automotive, electrical-electronics, medical, chemicals, semiconductors, hydrocarbons, and food production.

Encouraging Investment

The tax deductions offered to exporting companies will make the state more appealing for investments, the department added: "The fiscal incentives from the new federal decree aim to encourage industries to invest in infrastructure and enhance employee training, thus increasing competitiveness, productivity, and international market expansion capacity," the statement reads.

The tax deductions vary by sector, with rates of up to 89% for machinery and equipment used in new product research or technological development, 88% for the information technology industry, and 86% for the aerospace, manufacturing, assembly, or battery transformation industry.

Significant Competitive Advantage

"The provisions establish the basis for immediate deduction of new fixed asset investments and additional deductions for training expenses, providing companies with a significant competitive advantage," it was added.

As of the third quarter of this year, Tamaulipas had confirmed 73 investment projects totaling around $5.559 billion for industries including automotive, electrical-electronics, energy, metal-mechanics, chemical, petrochemical, and logistics.