Green Revolution in Motion! Mexico and the United States Boost Tax Incentives for Sustainable Businesses

In recent years, Mexico and the United States have intensified their efforts to promote a greener economy by implementing tax incentives and support programs aimed at companies investing in ecological solutions. This approach not only seeks to mitigate environmental impact but also positions both countries as leaders in sustainability and economic development.

In 2023, Mexico launched the "Plan Mexico," a comprehensive strategy to attract investments in high-value-added sectors, offering up to 30 billion pesos in tax incentives to companies making new investments and promoting innovation and training.

By 2024, these incentives began to show tangible results. According to data from the Mexican government, foreign direct investment (FDI) increased by 12% in sectors related to clean technologies and renewable energies. This growth reflects the effectiveness of the implemented policies and the growing interest of companies in sustainable projects.

In the United States, the Inflation Reduction Act (IRA) of 2023, promoted by the Biden administration, introduced significant tax credits for investments in clean energy. Although it initially faced political challenges, by 2024, the law proved to be economically beneficial, attracting substantial private investment and strategically located projects in Republican areas, making it indispensable even in the face of possible administrative changes.

Challenges in Implementation for 2025

Despite these advances, the implementation of these incentives faces complexities in 2025. In Mexico, one of the main challenges is ensuring that small and medium-sized enterprises (SMEs) can access these benefits. Many SMEs lack the necessary resources to meet the administrative and technical requirements demanded by tax incentive programs.

In the United States, political uncertainty represents a significant challenge. With Donald Trump's re-election, there is concern that current climate policies may be reversed or modified. Although the IRA has proven valuable, its future may depend on political dynamics and the ability of businesses and local governments to defend its continuity.

Possible Solutions for Effective Implementation

To overcome these challenges, both countries must adopt inclusive and adaptive strategies. In Mexico, technical and financial support programs could be established for SMEs, facilitating their access to tax incentives and ensuring their participation in the transition to a green economy.

In the United States, fostering bipartisan alliances that recognize the economic and environmental benefits of clean energy policies is crucial. Additionally, businesses should actively engage in promoting these policies, highlighting the tangible benefits they bring to the economy and the environment.

Leadership and Commitment to a Sustainable Economy

Mexican President Claudia Sheinbaum Pardo has emphasized the importance of these incentives as part of "Plan Mexico," stating that they aim to "strengthen the national economy, attract investments, and generate well-paying jobs in strategic sectors."

On the other hand, U.S. President Donald Trump has shown an ambiguous stance regarding climate policies. While he has supported certain initiatives such as nuclear energy and electric vehicles, his overall approach has been less favorable toward environmental regulations. However, the evidence of economic benefits derived from clean energy investments could influence a more favorable stance in the future.

In summary, both Mexico and the United States are at a crucial crossroads. The effective implementation of tax incentives and support programs for sustainable businesses will not only drive the green economy but also solidify both countries' leadership in the fight against climate change and the promotion of sustainable economic development.

Written by: Editorial