Government
Incentive Programs
Contents
Incentive Programs Description
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2015 Incentive Programs
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Contact Information
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Introduction Competitive Strategy What PAI is?
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COMPETITIVINESS ·TRANSPARENCY · GROWTH
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ORDINATION OF ECONOMIC PROMOTION AND COMPETITION
OFEC
Introduction • In 2010, the State of Mexico´s Economic Development Law was enacted in order to enhance economic development and encourage investment in the region. • With the enactment of this law, the State Council of Economic Development and Competition (CEFEC) was created. The CEFEC’s main objective is to design policy, strategies, programs, and actions to enhance investment and economic activity in the State of Mexico. • CEFEC´s main attribution is to design and approve the Government Incentive Programs (PAI) .
Competitive Strategy
Federal and State Economic Policies.
NATIONAL DEVELOPMENT PLAN 2013-2015
STATE DEVELOPMENT PLAN 2011-2017
PROSPEROUS MEXICO
PROGRESSIVE STATE
Objective: Enhance economic growth and competition, and increase employment.
Objective:Further economic competition.
5 IMPULSE
What PAI is?
The Government Incentive Programs (PAI) include all fiscal and non-fiscal incentives designed by the Government of the State of Mexico to stimulate economic development and growth. The PAI’s main objectives are: • Attracting new investments. • Strengthening local enterprises. • Supporting enterprises in strategic industries. • Supporting creation of new business ventures, specially Small and Medium Enterprises (MiPyMES). • Enhancing economic development and competition in municipalities that have been deemed “extreme poverty areas”.
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NCENTIV ES
Incentive Programs 2015
For Fiscal 2015, the Government of the State of Mexico approved 32 incentive programs that will benefit the productive sectors in the region. It is important to mention that this year’s PAI include benefits for the health sector, the social and productive organizations, small business owners, fireworks manufacturers, and rural enterprises. This year, nine government entities collaborated to develop the 2015 Incentive Programs. This effort reflects directly on the Government of the State of Mexico’s compromise to further growth in all productive sectors in the region.
Incentive Fiscal
SECRETARIAT
1. Agricultural Development 2. Economic Development 3. Education 4. Finance 5. Environment 6. Health 7. Public Safety 8. Labor 9. Tourism Total
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2
Incentive Non-Fiscal
Total
5 7 2 7 2 1 1 3 2
5 7 2 9 2 1 1 3 2
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32
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AQUACULTURE DEVELOPMENT
Secretariat of Agricultural Development
Genetically superior animals
• Subsidize the acquisition of genetically superior animals. Aquaculture Development
• Help farmers improve the processes of breeding, rearing, and harvesting of plants and animals in all types of water environments. Livestock Identification and Traceability Program
• Livestock Identification and Traceability conducted by the National System for Livestock Identification (SINIGA). This program has the objective of identifying diseases that might affect livestock in the southern region of the State of Mexico, thus hindering production. Women empowerment
• Program designed to empower women in rural areas and help them become self-employed. Efficient use of water
• Provide construction materials to the improvement of the Agricultural infrastructure and sustainability.
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Secretariat INDUSTRY of Economic Development
Industrial Parks • Preferential terms for acquiring spaces in Industrial Parks. International Trade Training • Provide programs, training and certification in international trade designed to enhance the enterprises´ trade practices. Investment Assistance • Provide assistance to potential investors. Trade Missions and Trade Fairs • Financial Support for enterprises attending trade missions and trade fairs that could result into business opportunities abroad. Export Development Program • Eligible companies will receive legal, fiscal, and administrative information related to exporting processes.
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E
Secretariat of Economic Development State of Mexico Certificate of Origin A certificate given to enterprises which are enrolled in the State Economic Development Registry. The benefits provided by this recognition are: • Tie-breaker factor in public procurement processes. • Elegibility for Business Excellence Award. • Elegibility for Government Incentive Programs. Business Excellence Award • An award to recognize business excellence in the following areas: Human Development, Competitiveness, Environment Protection, Exports, Social Responsibility, Gender Equality.
BUSINESS
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NEW Secretariat EMPLOYMENTS of Finance
Payroll Tax Exemptions Enterprises will benefit from a 100% payroll tax exemption for up to 36 months if they: • Employ elderly workers (60 years-old and plus). • Employ Education, Technological, and Technical Graduates from the Classes of 2013,2014,and 2015. • Move its business from other entity to the State of Mexico. • Build a startup company in the State of Mexico. Enterprises will benefit from a 100% payroll tax exemption for up to 36 months if they: • Employ first-time workers.
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CORPORATE EQUALITY Solidarity Sourcing Program
• The Solidarity Sourcing Program opens the Government’s purchasing process to new categories of suppliers who have trouble accessing major contractors. All registered suppliers are eligible to contracts up to $500,00 pesos. Waiver on Contractual Warranties and Hidden Defects Liabilities • Waiver on contractual warranties and hidden defects liabilities to those suppliers registered in the Solidarity Sourcing Program. Registration in the Solidarity Sourcing Program • 100% payment exemption for business owners who register in the Solidarity Sourcing Program. Equal treatment for Small and Medium Sized Enterprises (MiPyMes) • Equal treatment for Small and Medium Sized Enterprises (MiPyMes) in all procurement processes in the State of Mexico.
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P
The State of Mexico’s Council for Science and Technology (COMECyT) Research, Technological Development, and Innovation Incentives • Enterprises who invest on Research, Technological Development, and Innovation are eligible for financial incentives. Patents Support Program • Its objective is the securing of intellectual property created in the State of Mexico by providing total reimbursement on patent fees required by the Mexican Institute of Industrial Property (IMPI). Program for Strengthening the Scientific and Technological Capacity • Incentives for financing research and development of the enterprises’ technological capacities. With special focus in: Training for personnel, internships, specialized training, hiring of graduate professionals, and attraction of subject area experts. State Innovation Systems • A program developed for the very small, small, and medium enterprises (MiPyMES) who wish to enhance and further their competitivity through innovation.
13 PATENTES
Secretariat DUAL of Education EDUCATION Creation of local business ventures with Parents Associations • Promote the creation of small business ventures among parents associations to manufacture uniforms (5 to 7 parents). Dual Education System (MMFD) • The objective of this program is to further the Students’ formation by integrating them to the working force through apprenticeships and practicums.
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Secretariat of Environment Clean Industry Certification • The Clean Industry Certification is given to companies that demonstrate satisfactory accomplishment of legal requirements regarding environmental protection. Those companies that comply are eligible for the following benefits: exemption on inspections, savings on raw materials and energy, increased comparative advantage, and benefits for exporting.
CLEAN
Hydrological Environmental Services
• A program to pay landowners with 76,667+ Hectare of land to maintain their forest and thus protect the hydrological functions of the different areas.
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SANITATION CERTIFICATION
Secretariat of Health
Food Safety and Sanitation Program
Provide enterprises with the necessary information for complying with the following requirements:
• Sanitation Certification for food and beverages service providers. • Certification for food and beverages handlers.
• Notifications of Operations.
• Application for Sanitary Permits.
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Secretariat of Public Safety Training for pyrotechnic manufacturers • Teach the State of Mexico’s fireworks manufacturers the essential safety measures for the production, handling, and storage of fireworks.
TRAINING 17
AUTOEMPLEO
Secretariat of Labor Scholarships for Corporate Education (Bécate)
• Program targeted to people who wish to enhance their professional capabilities and skills in order to become self-employed or further their professional career. Promoting Social Organizations
• Advise autonomous associations of persons who want to establish CoOperatives for their mutual social, economic, and cultural benefit . Promoting Self-Employment • Encourage the creation and strengthening of new business ventures by providing financial and non-financial incentives to entrepreneurs. Entreprenerus may be eligible for the following: • Up to $25,000 for equipment and infrastructure.
• Up to $125,000 for equipment and infrastructure (If the enterprise is integrated by 5 or more people)
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C
Secretariat of Tourism Sale of Traditional Crafts • Provide State of Mexico’s craftsmen with a space to sell their products in CASART’s store. This program operates under CASART’s consignment terms. Promotion of Traditional Crafts • Encourage participation of State of Mexico´s craftsmen in state, national, and international events in order to increase sales and expand markets.
19 CRAFTSMEN
INCEN Summary of Incentives 2015
Agricultural Development 1. Genetically superior animals. 2. Aquaculture Development 3. Livestock Identification and Traceability Program 4. Women empowerment 5. Efficient use of water
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Economic Development 1. Industrial Parks 2. International Trade Training 3. Investment Assistance 4. Trade Missions and Trade Fairs 5. Export Development Program 6. State of Mexico Certificate of Origin 7. Business Excellence Award
Finanzas 1. Payroll Tax Exemptions 2. Solidarity Sourcing Program 3. Waiver on Contractual Warranties and Hidden Defects Liabilities 4. Registration in the Solidarity Sourcing Program. 5. Equal treatment for Small and Medium Sized Enterprises (MiPyMes)
NTIVES Education
1. Creation of local business ventures with Parents Associations 2. Dual Education System (MMFD)
Public Safety 1. Training for pyrotechnic manufacturers
Environment
1. Clean Industry Certification 2. Hydrological Environmental Services
Labor 1. Scholarships for Corporate Education (BĂŠcate) 2. Promoting Social Organizations 3. Promoting SelfEmployment
Health
1. Food Safety and Sanitation Program
Tourism 1. Sale of Traditional Crafts 2. Promotion of Traditional Crafts
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Unit of Information, Planning, Programming and Evaluation Otumba No. 782, Col. Electricistas, Toluca, Estado de México. Tel.: (01 722) 384.03.52
CONTACT
Secretariat of Education Informes en: Coordination of Dual Education Gladiolas No. 25, Izcalli Cuauhtémoc I, Metepec, Estado de México C.P 52172 Tel.: (01 722) 219.02.12 Ext. 111.
Secretariat of Finance Informes en: Lerdo Pte. No. 300, Segundo Piso, Puerta 345, Palacio del Poder Ejecutivo, Colonia Centro, Toluca, Estado de México C.P. 50000 Tel.: (01 722) 276.00.66.
COMECyT Informes en: Hacienda Cieneguilla No. 1, Col. Santa Elena, San Mateo Atenco, Estado de México C.P. 52100 Tel.: (01 722) 319.00.11 al 15. Secretariat of Economic Development Informes en: Paseo Colón No. 220, Col. Residencial Colón, C.P. 50120. Toluca, Estado de México. Tels.: (01 722) 277.88.71 y 210.50.22 Ext. 106, 109 y 112. Secretariat of Environment Informes en: Conjunto SEDAGRO Edificio C, Puerta 101, Col. Ex Rancho San Lorenzo, Metepec, Estado de México C.P. 52140 Tels.: (01 722) 271.07.79 y 271.07.89 Ext. 144. Secretariat of Health Informes en: Josefa Ortiz de Domínguez No. 200 Esq. José Ma. Morelos, Col. San Sebastián, Toluca, Estado de México C.P. 50150 Tel.: (01 722) 277.39.25
Secretariat of Public Safety Informes en: Paseo Tollocan Ote. No. 1324, Esq. Marie Curie, Col. San Sebastián, Toluca, Estado de México C.P. 50150 Tel.: (01 722) 275.82.00 Ext. 10787 Secretariat of Agricultural Development Informes en: Conjunto SEDAGRO, Col. Ex Rancho San Lorenzo, Metepec, Estado de México C.P. 52140 Tel.: (01 722) 275.64.00 Ext. 5704. Secretariat of Labor Informes en: Rafael M. Hidalgo No. 301, Col. Cuauhtémoc, Toluca, Estado de México C.P. 52130 Tels.: (01 722) 276.09.38 y 276.09.00 Ext. 4777. Secretariat of Tourism Informes en: Robert Bosch No. 1731 2o Piso, Col. Zona Industrial, Toluca, Estado de México C.P. 50071 Tel.: (01 722) 275.68.94 al 95.
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IIFAEM Av. Paseo Tollocan Ote. No. 700, Col. Izcalli IPIEM, Toluca, Estado de México C.P. 50150 Tel.: (01 722) 217.51.08.
COFEC COORDINATION OF ECONOMIC PROMOTION AND COMPETITION
COMPETITIVINESS ·TRANSPARENCY · GROWTH
SECRETARIAT OF FINANCE SECRETARIAT OF ECONOMIC DEVELOPMENT Paseo Colón No. 220, Col. Residencial Colón, C.P. 50120. Toluca, Estado de México. Tels.: (01 722) 277.88.71 y 210.50.22 Ext. 106, 109 y 112. www.edomex.gob.mx/cofec cefec.sedeco@gmail.com Lerdo Pte. No. 300, segundo piso, puerta 345, Palacio del Poder Ejecutivo, Colonia Centro, Toluca, México C.P. 50000 Tels.: (01 722) 276.00.66