The Most Powerful Tax Shield in Mexican Corporate Law
Many business executives are unaware that the Mexican Federal Tax Code (Código Fiscal de la Federación) contains one of the world’s most aggressive fiscal incentives for clean energy adoption.
Under Article 34, Fraction XIII of the Ley del Impuesto Sobre la Renta (LISR), investments in renewable power generation machinery and equipment are granted:
“100% accelerated tax deduction in the single tax year in which the asset is acquired and begins operation, provided the equipment remains operating for at least five subsequent years.”
Traditional Depreciation vs. Solar Accelerated Depreciation
Under standard fiscal accounting rules, capital expenditures (machinery, company vehicles, computing equipment) must be depreciated gradually over 5 to 10 years:
| Asset Category | Standard LISR Annual Rate | Time to Deduct 100% |
|---|---|---|
| Industrial Machinery | 10% per year | 10 Years |
| Company Vehicles | 25% per year | 4 Years |
| Computers & IT Hardware | 30% per year | 3.3 Years |
| MyNova Solar Infrastructure (Art. 34 LISR) | 100% in Year 1 | Immediate (Year 1) |
Real-World Corporate Example: Monterrey Manufacturing Plant
Consider a medium-sized plastic injection plant in Monterrey, Nuevo León with an annual CFE electricity expenditure of $2,400,000 MXN:
- System Cost: $3,000,000 MXN for a 250 kWp commercial rooftop array.
- Immediate SAT Tax Shield:
- At a corporate tax rate (ISR) of 30%, deducting $3,000,000 MXN results in an immediate tax liability reduction of $900,000 MXN in the current fiscal year.
- Annual CFE Electricity Savings: $2,250,000 MXN / year.
- Effective Out-of-Pocket Cost: $3,000,000 - $900,000 (Tax saving) = $2,100,000 MXN.
- Payback Duration: Less than 11 months.
0% IVA (Value Added Tax) Credit
In addition to the 100% ISR deduction, companies registered under general commercial regimes can fully credit the 16% IVA on the solar invoice against their standard monthly IVA sales collections, recovering the entire tax component within 30 to 60 days.
Financing Options with Bankaool
MyNova has structured a preferred green financing corridor with Bankaool:
- Down Payment: From 10% to 20%.
- Loan Terms: 12 to 84 months.
- Interest Rates: Preferential rates from 11.5% APR.
- Debt Service: Monthly loan payments are structured to be strictly lower than your historic CFE electric savings, ensuring Day-1 positive cash flow.