On July 4, 2025, the Decree granting tax benefits in the Circular Economy Development Poles for Well-being (“Decree”) was published in the evening edition of the Official Gazette of the Federation (“DOF”). This instrument aims to promote the circular economy through tax incentives and administrative facilities directed at developers and companies executing sustainable projects within the Circular Economy Development Poles for Well-being (“PODECIBI”).
On July 4, 2025, the Decree granting tax benefits in the Circular Economy Development Poles for Well-being (“Decree”) was published in the evening edition of the Official Gazette of the Federation (“DOF”). This instrument aims to promote the circular economy through tax incentives and administrative facilities directed at developers and companies executing sustainable projects within the Circular Economy Development Poles for Well-being (“PODECIBI”).
These benefits consist of the application of a tax credit applicable against the fee for the use, enjoyment, or exploitation of public domain assets, the immediate deduction of investment in new fixed assets, the additional deduction of training expenses, and the exemption from the obligation to submit the notice of tax incentives accreditation in accordance with Article 25 of the Federal Tax Code.
The tax benefits established in the Decree may be applied by residents in Mexico, as well as by foreign residents with an establishment that are (i) Individuals who pay taxes under the Business and Professional Activities regime (ii) Legal Entities that pay taxes under the General regime; and (iii) Legal Entities that pay taxes under the Simplified Trust regime; provided they have circular economy projects to be developed within the industrial premises of a PODECIBI.
In accordance with the Decree, legal entities that pay taxes under the General or Simplified Trust regime, and that are responsible for the development and management of a PODECIBI, may apply a tax credit equivalent to 100% of the fee for the use, enjoyment, or exploitation of public domain assets. This benefit will apply from the date of issuance of the concession title and up to the following 12 months, if they are in the process of constructing the PODECIBI infrastructure; or from the completion of the infrastructure and up to an additional 24 months, if no rent or consideration is charged to circular economy companies.
For their part, the aforementioned taxpayers with circular economy projects may access the following tax benefits:
1. Immediate deduction of 100% of the original amount of investments in new fixed assets, provided that:
• They are used to carry out their activities in the PODECIBI;
• They remain in use for at least two years;
• A specific record is kept of the investments for which the immediate deduction option was chosen.
It should be noted that certain assets such as office furniture, internal combustion vehicles, non-individualizable assets, or aircraft other than those dedicated to agricultural aerial spraying will not be deductible under this incentive.
2. Additional deduction of 25% of the increase in expenses for:
• Technical or scientific training linked to the activity of circular economy companies and developers, provided it is granted to workers registered with the IMSS.
• Technological innovation linked to investment projects for the development of inventions, allowing for the obtaining of patents, and those investment projects developed for obtaining initial certifications required by circular economy companies and developers for their integration into local/regional supply chains.
Both tax incentives will be applicable in the fiscal years from 2025 to 2030. It is important to highlight that the incentives cannot be applied together with other tax benefits established in the Income Tax Law, such as the optional regime for corporate groups, trusts dedicated to the acquisition or construction of real estate, or tax incentives linked to the national strategy “Plan Mexico.”
Furthermore, the eligibility for tax benefits will be subject to the projects being previously validated by the Ministry of Environment and Natural Resources (“SEMARNAT”) in accordance with the guidelines issued by said agency. The compliance certificate issued by SEMARNAT will be notified to the Tax Administration Service (“SAT”), and the list of beneficiaries will be updated semi-annually on its official site.
It should be noted that, at the time of the publication of the Decree, the PODECIBI have not yet been formally determined or established by SEMARNAT. However, the Decree establishes that said authority must issue the applicable guidelines within a maximum period of 30 calendar days from its entry into force.
