New Film and Audiovisual Law

New Film and Audiovisual Law

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Last week, the Government of Mexico announced an initiative for a Federal Film and Audiovisual Law, which modernizes the previous film law to include the digital environment, and will also impact other legislation (Labor Law and Copyright Law).

During the presentation, officials emphasized that this is not only a new law that will be sent to Congress for discussion and approval, but rather a comprehensive project aimed at strengthening Mexican cinema, complemented by a series of additional actions that build upon existing government funds and support programs.

Among the measures included in the new law and the additional legal changes, highlights include the obligation to maintain a minimum percentage of national content in movie theaters and on digital distribution platforms, guaranteed public funding for the promotion of Mexican productions through different funds, the creation of new economic incentives for productions (distinct from and additional to those already granted), as well as efforts to protect copyright in the face of the advance of Artificial Intelligence.

Later, on Sunday, February 15, during an event attended by Salma Hayek, government officials, and other Mexican filmmakers, additional details were presented and further actions were announced as part of this broader plan to strengthen the industry. Together with the reinforcement of existing programs and incentives, these new measures aim to support the training, production, exhibition, and preservation of cinematic works.

In addition to revisiting what had already been announced regarding the new film law, the event also reviewed actions carried out during 2025 and introduced other important announcements, including:

• The recent opening of the new Cineteca de Chapultepec, featuring screening rooms and spaces dedicated to educational activities.
• Support for film students through the CCC, which received investment during 2025 to modernize facilities and equipment, eliminated tuition fees, increased enrollment capacity, and opened a new campus focused on professionalizing technical and craft disciplines within filmmaking.
• A renovation plan for Estudios Churubusco to modernize the studio and make it more attractive for both national and international productions.
• An increase to EFICINE (18%), a budget increase for IMCINE (25%), and legal adjustments to guarantee the permanence and legal certainty of FOCINE with progressive funding increases, seeking to consolidate the institute and its funds as a comprehensive public policy.
• The comprehensive project and the new law recognize that cinema is part of our cultural memory, which is why the plan also includes legal adjustments and support for the archiving and preservation of national cinematic works.

About the new fiscal incentive

However, the most notable announcement in both events was related to the new fiscal incentive, which is added to existing incentives and support mechanisms (meaning that, if requirements are met, productions may obtain this new incentive regardless of whether they already receive other national or state support).

What it consists of

For those unfamiliar with legal or fiscal terminology, these concepts may seem confusing, but IMCINE published a series of informational banners on its social media channels to make this new support easier to understand. Below are the most relevant aspects summarized from that publication:

1. It is a tax credit (the technical term) that will allow productions to recover up to 30% of the expenses incurred in Mexico during a film production (with a cap of up to 40 million pesos per project).
2. This incentive aims both to strengthen Mexican production companies (by allowing them to recover part of production costs) and to attract international productions, requiring them to spend up to 70% of their total budget on Mexican talent and companies.
3. The incentive may be requested by Mexican companies and individuals, foreign companies with operations in Mexico, and international productions working through Mexican companies that participate as contractors or co-producers.
4. The incentive is complementary to existing public support programs (they are not mutually exclusive), meaning that productions receiving EFICINE or other funding may also apply for this new incentive.

Why it matters

Many countries already offer incentives of this type, which have strengthened their national industries. By attracting major international productions, these mechanisms generate economic impact, help develop local talent and industry capabilities, and also benefit national productions that may qualify for the incentive.

We should stay attentive to the approval process of the new law and to the future guidelines that will define its scope and how productions within our community may access these opportunities.