Mexico’s Film Industry: A New Era of Growth and Protection
On February 13th, Presidenta Claudia Sheinbaum unveiled a sweeping initiative to revitalize the Mexican film industry through the Federal Law of Cinema and Audiovisual, alongside a significant fiscal incentive plan. This marks a pivotal moment for Mexican cinema, aiming to address long-standing challenges and position the nation as a competitive force in the global audiovisual landscape.
Addressing Historical Imbalances
The current Federal Cinematography Law, dating back to 1992, has been criticized for viewing films primarily as commodities, failing to adequately integrate digital formats, and overlooking cultural rights. The new legislation seeks to rectify these issues by broadening the definition of the cinematic ecosystem to include streaming platforms and prioritizing the preservation of Mexico’s audiovisual heritage.
Guaranteed Screen Time and Accessibility
A key component of the new law is the guarantee of at least 10% screen time for national films in cinemas, with a minimum projection period of 14 days. This aims to provide Mexican productions with greater visibility and a fairer opportunity to reach audiences. The legislation emphasizes accessibility for audiences with visual or auditory limitations.
Protecting Voice Actors in the Age of AI
The reforms extend to labor protections, specifically addressing the growing threat of Artificial Intelligence to voice actors. Amendments to the Federal Labor Law and the Federal Law of Copyright will require explicit and informed authorization for the use of human voices, ensuring fair compensation and transparency in the industry. This proactive approach positions Mexico at the forefront of safeguarding artistic rights in the face of technological advancements.
Fiscal Incentives to Attract Investment
Complementing the legislative changes, the government announced a tax credit program offering up to 30% of the total project cost – capped at 40 million pesos – for productions filmed in Mexico. This incentive, transferable or applicable to taxes, is designed to attract both domestic and international investment, mirroring successful models implemented in other countries.
Boosting the Entire Production Chain
The initiative isn’t solely focused on high-budget productions. It aims to support the entire production chain, from script development to preservation. The government intends to increase funding for programs like FOCINE, which supports various sectors of the population through film production grants. A requirement for projects to utilize at least 70% national suppliers is expected to stimulate growth within the Mexican film services sector.
Eligibility and Investment Thresholds
Both Mexican residents and foreign entities with a permanent establishment in Mexico can access the tax credit. Those without a permanent establishment must partner with a Mexican production company. Minimum investment thresholds apply: 40 million pesos for fiction and animated features, 20 million pesos for documentaries, and 5 million pesos for animation, visual effects, and post-production. The program will be overseen by IMCINE, the Secretariat of Culture, and the Secretariat of Finance and Credit.
A Long-Term Commitment
The decree supporting these initiatives will remain in effect until September 30, 2030, demonstrating a long-term commitment to fostering a thriving film industry in Mexico.
Frequently Asked Questions
Q: What is the main goal of the new Federal Law of Cinema and Audiovisual?
A: To promote and protect Mexican cinema, ensuring greater visibility for national productions and safeguarding the rights of industry professionals.
Q: How will the tax credit program work?
A: Productions meeting the eligibility criteria can receive a tax credit of up to 30% of their total cost, which can be transferred, applied to taxes, or sold.
Q: What protections are being position in place for voice actors?
A: The law will require explicit authorization for the use of human voices and ensure fair compensation and transparency in the face of AI technologies.
Q: What is the minimum investment required to qualify for the tax credit?
A: It varies depending on the type of production, ranging from 5 million pesos for post-production to 40 million pesos for feature films.
Pro Tip
For filmmakers considering Mexico as a filming location, now is an opportune time to explore the benefits of the new tax credit program. Thoroughly research the eligibility requirements and prepare a detailed budget to maximize potential savings.
