New Orleans's new law to attract investment

Nuevo León approves its new Investment and Employment Promotion Law. Learn about the tax and economic incentives it seeks to lead the way in nearshoring in Mexico.

The Nuevo León Congress has approved a key piece of legislation for its economic future: the new Investment and Employment Promotion Law. This legislation creates an aggressive package of incentives to consolidate the state as the leading nearshoring destination in Latin America.

In a strategic move to capitalize on the global wave of nearshoring, the state of Nuevo León has implemented a robust new legal framework: the Law to Promote Investment and Employment for the State of Nuevo León. Approved by the local congress, this law seeks not only to attract new companies but also to strengthen existing ones through a clear and attractive incentive system.

Key Objectives: Beyond Money

The legislation is a direct response to the needs of companies seeking to relocate their supply chains. Its main objectives go beyond simple tax exemptions and aim for comprehensive development:

* Attract direct investment with clear rules and institutional security.

* Strengthen the competitiveness of existing companies.

* Generate stable and better-paid jobs.

* Promote regional development, encouraging the establishment of companies outside the metropolitan area.

* Promote innovation and the development of local supply chains.

The Incentive Package: What's on Offer?

The law establishes a range of benefits designed to make Nuevo León the most attractive option for investors. These can be classified into three broad groups:

| Incentive Type | Specific Example | Who is it for? |

|—|—|—|

| Fiscal | Partial or full subsidy of the Payroll Tax (ISN). | Companies that create new direct jobs. |

| Economic | Reimbursement of expenses for worker training or infrastructure projects. | New investments or significant expansions. |

| Non-Financial | Consulting and management of procedures before authorities at all three levels of government. | All investors requiring support. |

Source: Law for the Promotion of Investment and Employment for the State of Nuevo León

Priority for Social and Youth Development

A notable aspect of the law is its social engineering component. It's not just about attracting capital, but about directing it to solve local problems. Priority and additional benefits will be given to:

* Companies that set up in rural areas or outside the metropolitan area.

* Companies that hire young people in their first job, women in vulnerable situations, or older adults.

* New companies created by young entrepreneurs (Startups).

The "First Job" and "First Company" programs stand out, offering a 100% subsidy on payroll taxes for 24 months to companies that hire recent graduates without experience or to new businesses founded by young people between 18 and 29 years old, a direct boost to local talent.

This legislation is Nuevo León's calling card in the global competition for nearshoring, a comprehensive strategy that combines financial strength with social vision.