GovernmentIncentivePrograms

Introduction

Competitive Strategy

What PAI is?

Incentive Programs Description

Summary ofIncentives 2015

Contact Information

Contents

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• In2010,theStateofMexico´sEconomicDevelopmentLawwasenactedinordertoenhanceeconomicdevelopmentandencourageinvestmentintheregion.

•Withtheenactmentofthislaw,theStateCouncilofEconomicDevelopmentandCompetition(CEFEC)wascreated.TheCEFEC’smainobjectiveistodesignpolicy,strategies,programs,andactionstoenhanceinvestmentandeconomicactivityintheStateofMexico.

•CEFEC´smainattributionistodesignandapprovetheGovernmentIncentivePrograms(PAI).

Introduction

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IMPULSE

Federal

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Economic

Policies.

CompetitiveStrategy

NATIONAL DEVELOPMENT PLAN

2013-2015

PROSPEROUSMEXICO

Objective: Enhance economic growth and

competition, andincrease employment.

STATE DEVELOPMENT PLAN 2011-2017

PROGRESSIVESTATE

Objective:Further economic competition.

5IMPULSE

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TheGovernmentIncentivePrograms(PAI)includeallfiscalandnon-fiscalincentivesdesignedbytheGovernmentoftheStateofMexicotostimulateeconomicdevelopmentandgrowth.ThePAI’smainobjectivesare:

•Attractingnewinvestments.

•Strengtheninglocalenterprises.

•Supportingenterprisesinstrategicindustries.

•Supportingcreationofnewbusinessventures,speciallySmallandMediumEnterprises(MiPyMES).

•Enhancingeconomicdevelopmentandcompetitioninmunicipalitiesthathavebeendeemed“extremepovertyareas”.

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What PAI is?

IncentivePrograms 2015

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TIVForFiscal2015,theGovernmentoftheStateofMexico

approved32incentiveprogramsthatwillbenefittheproductivesectorsintheregion.Itisimportanttomentionthatthisyear’sPAIincludebenefitsforthehealthsector,thesocialandproductiveorganizations,smallbusinessowners,fireworksmanufacturers,andruralenterprises.

Thisyear,ninegovernmententitiescollaboratedtodevelopthe2015IncentivePrograms.ThiseffortreflectsdirectlyontheGovernmentoftheStateofMexico’scompromisetofurthergrowthinallproductivesectorsintheregion.

SECRETARIATIncentiveFiscal

IncentiveNon-Fiscal Total

Total

1. Agricultural Development2. Economic Development3. Education4. Finance5. Environment6. Health7. Public Safety8. Labor9. Tourism

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2

572721132

30

572921132

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Genetically superior animals

•Subsidizetheacquisitionofgeneticallysuperioranimals.

Aquaculture Development

•Helpfarmersimprovetheprocessesofbreeding,rearing,andharvestingofplantsandanimalsinalltypesofwaterenvironments.

Livestock Identification and Traceability Program

•LivestockIdentificationandTraceabilityconductedbytheNationalSystemforLivestockIdentification(SINIGA).ThisprogramhastheobjectiveofidentifyingdiseasesthatmightaffectlivestockinthesouthernregionoftheStateofMexico,thushinderingproduction.

Women empowerment

•Programdesignedtoempowerwomeninruralareasandhelpthembecomeself-employed.

Adequate intake of water

•ProvideconstructionmaterialstobenefitAgriculturalinfrastructureandsustainability.

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Secretariatof AgriculturalDevelopment M

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Industrial Parks

•PreferentialtermsforacquiringspacesinIndustrialParks.

International Trade Training

•Provideprograms, training andcertificationin internationaltrade designedtoenhancetheenterprises´tradepractices.

Investment Assistance

•Provideassistancetopotentialinvestors.

Trade Missions and Trade Fairs

•FinancialSupportforenterprisesattendingtrademissionsandtradefairsthatcouldresultintobusinessopportunitiesabroad.

Export Development Program

•Eligiblecompanieswillreceivelegal,fiscal,andadministrativeinformationrelatedtoexportingprocesses.

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INDUSTRYSecretariat of Economic

Development

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NEWEMPLOYMENTS

State of Mexico Certificate of Origin

AcertificategiventoenterpriseswhichareenrolledintheStateEconomicDevelopmentRegistry.Thebenefitsprovidedbythisrecognitionare:

•Tie-breakerfactorinpublicprocurementprocesses.

•ElegibilityforBusinessExcellenceAward.

•ElegibilityforGovernmentIncentivePrograms.

Business Excellence Award

•Anawardtorecognizebusinessexcellenceinthefollowingareas:HumanDevelopment,Competitiveness,EnvironmentProtection,Exports,SocialResponsibility,GenderEquality.

10BUSINESS

EXCELLENCE

Secretariat of Economic Development

NEWEMPLOYMENTS

Payroll Tax Exemptions

Enterpriseswillbenefitfroma100%payrolltaxexemptionforupto36monthsifthey:

• Employelderlyworkers(60years-oldandplus).

• EmployEducation,Technological,andTechnicalGraduatesfromtheClassesof2013,2014,and2015.

• MoveitsbusinessfromotherentitytotheStateofMexico.

• BuildastartupcompanyintheStateofMexico.

Enterpriseswillbenefitfroma100%payrolltaxexemptionforupto36monthsifthey:

•Employfirst-timeworkers.

Secretariatof Finance

11BUSINESS

EXCELLENCE

PATENTS

CORPORATEEQUALITY

Solidarity Sourcing Program

TheSolidaritySourcingProgramopenstheGovernment’spurchasingprocesstonewcategoriesofsupplierswhohavetroubleaccessingmajorcontractors.Allregisteredsuppliersareeligibletocontractsupto$500,000MXP.

Waiver on Contractual Warranties and Hidden Defects Liabilities

WaiveroncontractualwarrantiesandhiddendefectsliabilitiestothosesuppliersregisteredintheSolidaritySourcingProgram.

Registration in the Solidarity Sourcing Program

100%paymentexemptionforbusinessownerswhoregisterintheSolidaritySourcingProgram.

Equal treatment for Small and Medium Sized Enterprises (MiPyMes)

EqualtreatmentforSmallandMediumSizedEnterprises(MiPyMes)inallprocurementprocessesintheStateofMexico.

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PATENTS

CORPORATEEQUALITY

Research, Technological Development, and Innovation Incentives

EnterpriseswhoinvestonResearch,TechnologicalDevelopment,andInnovationareeligibleforfinancialincentives.

Patents Support Program

ItsobjectiveisthesecuringofintellectualpropertycreatedintheStateofMexicobyprovidingtotalreimbursementonpatentfeesrequiredbytheMexicanInstituteofIndustrialProperty(IMPI).

Program for Strengthening the Scientific and Technological Capacity

Incentivesforfinancingresearchanddevelopmentoftheenterprises’technologicalcapacities.Withspecialfocusin:Trainingforpersonnel,internships,specializedtraining,hiringofgraduateprofessionals,andattractionofsubjectareaexperts.

State Innovation Systems

Aprogramdevelopedfortheverysmall,small,andmediumenterprises(MiPyMES)whowishtoenhanceandfurthertheircompetitivitythroughinnovation.

The State of Mexico’s Council for Science and Technology (COMECyT)

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DUALEDUCATION

Creation of local business ventures with Parents Associations

Promotethecreationofsmallbusinessventuresamongparentsassociationstomanufactureuniforms(5to7parents).

Dual Education System (MMFD)

TheobjectiveofthisprogramistofurthertheStudents’formationbyintegratingthemtotheworkingforcethroughapprenticeshipsandpracticums.

Secretariatof Education

14CLEAN

INDUSTRY

Secretariat of Environment

15CLEAN

INDUSTRY

Clean Industry Certification

TheCleanIndustryCertificationisgiventocompaniesthatdemonstratesatisfactoryaccomplishmentoflegalrequirementsregardingenvironmentalprotection. Thosecompaniesthatcomplyareeligibleforthefollowingbenefits:exemptiononinspections,savingsonrawmaterialsandenergy,increasedcomparativeadvantage,andbenefitsforexporting.

Hydrological Environmental Services

Aprogramtopaylandownerswith76,667+Hectareoflandtomaintaintheirforestandthusprotectthehydrologicalfunctionsofthedifferentareas.

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Food Safety and Sanitation Program

Provideenterpriseswiththenecessaryinformationforcomplyingwiththefollowingrequirements:

•SanitationCertificationforfoodandbeveragesserviceproviders.

•Certificationforfoodandbeverageshandlers.

•NotificationsofOperations.

•ApplicationforSanitaryPermits.

Secretariatof Health

TRAININGTraining for pyrotechnic manufacturers

•TeachtheStateofMexico’sfireworksmanufacturerstheessentialsafetymeasuresfortheproduction,handling,andstorageoffireworks.

Secretariatof Public Safety

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Scholarships for Corporate Education (Bécate)

•Programtargetedtopeoplewhowishtoenhancetheirprofessionalcapabilitiesandskillsinordertobecomeself-employedorfurthertheirprofessionalcareer.

Promoting Social Organizations

•Adviseautonomousassociationsofpersonswho wanttoestablishCo-Operativesfortheirmutualsocial,economic,andculturalbenefit.

Promoting Self-Employment

•Encouragethecreationandstrengtheningofnewbusinessventuresbyprovidingfinancialandnon-financialincentivestoentrepreneurs.Entreprenerusmaybeeligibleforthefollowing:

•Upto$25,000MXPforequipmentandinfrastructure.

•Upto$125,000MXPforequipmentandinfrastructure(Iftheenterpriseisintegratedby5ormorepeople).

Secretariatof Labor

CRAFTSMEN

Sale of Traditional Crafts

ProvideStateofMexico’scraftsmenwithaspacetoselltheirproductsinCASART’sstore.ThisprogramoperatesunderCASART’sconsignmentterms.

Promotion of Traditional Crafts

EncourageparticipationofStateofMexico´scraftsmeninstate,national,andinternationaleventsinordertoincreasesalesandexpandmarkets.

Secretariat of Tourism

19CRAFTSMEN

INCENTIVESSummary

of Incentives 2015

1. Geneticallysuperioranimals.

2. AquacultureDevelopment

3. LivestockIdentificationandTraceabilityProgram

4. Womenempowerment

5. Efficientuseofwater

1. IndustrialParks2. InternationalTrade

Training3. InvestmentAssistance4. TradeMissionsand

TradeFairs5. ExportDevelopment

Program6. StateofMexico

CertificateofOrigin7. BusinessExcellence

Award

1. PayrollTaxExemptions

2. SolidaritySourcingProgram

3. WaiveronContractualWarrantiesandHiddenDefectsLiabilities

4. RegistrationintheSolidaritySourcingProgram.

5. EqualtreatmentforSmallandMediumSizedEnterprises(MiPyMes)

Agricultural Development

Economic Development

Finance

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INCENTIVES1. Creationoflocal

businessventureswithParentsAssociations

2. DualEducationSystem(MMFD)

1. Trainingforpyrotechnicmanufacturers

1. CleanIndustryCertification

2. HydrologicalEnvironmentalServices

1. ScholarshipsforCorporateEducation(Bécate)

2. PromotingSocialOrganizations

3. PromotingSelf-Employment

1. FoodSafetyandSanitationProgram

1. SaleofTraditionalCrafts

2. PromotionofTraditionalCrafts

Education

Public Safety

Environment

Labor

Health

Tourism

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Secretariat of EducationCoordination of Dual Education GladiolasNo.25,IzcalliCuauhtémocI,Metepec,EstadodeMéxico,C.P52172Tel.:(01 722) 219.02.12Ext.111.

Unit of Information, Planning, Programming and Evaluation OtumbaNo.782,Col.Electricistas,Toluca,EstadodeMéxico.Tel.:(01 722) 384.03.52

Secretariat of FinanceLerdoPte.No.300,SegundoPiso,Puerta345,PalaciodelPoderEjecutivo,ColoniaCentro,Toluca,EstadodeMéxico,C.P.50000Tel.:(01 722) 276.00.66.

COMECyTHaciendaCieneguillaNo.1,Col.SantaElena,SanMateoAtenco,EstadodeMéxico,C.P.52100Tel.:(01 722) 319.00.11al15.

Secretariat of Economic DevelopmentPaseoColónNo.220,Col.ResidencialColón,C.P.50120.Toluca,EstadodeMéxico.Tels.:(01 722) 277.88.71 y210.50.22Exts.106,109y112.

Secretariat of EnvironmentConjuntoSEDAGRO,EdificioC,puerta101,Col.ExRanchoSanLorenzo,Metepec,EstadodeMéxico,C.P.52140Tels.:(01 722) 271.07.79y271.07.89Ext.144.

Secretariat of HealthJosefaOrtizdeDomínguezNo.200Esq.JoséMa.Morelos,Col.SanSebastián,Toluca,EstadodeMéxico,C.P.50150Tel.:(01 722) 277.39.25

Secretariat of Public SafetyPaseoTollocanOte.No.1324,Esq.MarieCurie,Col.SanSebastián,Toluca,EstadodeMéxico,C.P.50150Tel.:(01 722) 275.82.00 Ext. 10787

Secretariat of Agricultural DevelopmentConjuntoSEDAGRO,Col.ExRanchoSanLorenzo,Metepec,EstadodeMéxico,C.P.52140Tel.:(01 722) 275.64.00Ext.5704.

Secretariat of LaborRafaelM.HidalgoNo.301,Col.Cuauhtémoc,Toluca,EstadodeMéxico,C.P.52130Tels.:(01 722) 276.09.38y276.09.00Ext.4777.Secretariat of TourismRobertBoschNo.1731,2opiso,Col.ZonaIndustrial,Toluca,EstadodeMéxico,C.P.50071Tel.:(01 722) 275.68.94al95.IIFAEMAv.PaseoTollocanOte.No.700,Col.IzcalliIPIEM,Toluca,EstadodeMéxico,C.P.50150Tel.:(01 722) 217.51.08.

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RobertBoschEsq.1odeMayos/n,ZonaIndustrial,Toluca,EstadodeMéxico.

Tels.:(01 722) 275 81 00 y 275 81 03

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COORDINATION OF ECONOMICPROMOTION AND COMPETITION

SECRETARIAT OF FINANCELerdoPte.No.300,segundopiso,puerta345,PalaciodelPoder

Ejecutivo,ColoniaCentro,Toluca,México,C.P.50000Tels.:(01 722) 276.00.66

SECRETARIAT OFECONOMIC DEVELOPMENT

www.edomex.gob.mx/cofeccefec.sedeco@gmail.com