Mexico Unveils New Cinema Tax Incentive, But Illinois Production Remains Strong

Mexico's proposed tax credit aims to attract more filming, but Illinois' established incentives and infrastructure keep it a top U.S. production hub.

Published on Feb. 18, 2026

Got story updates? Submit your updates here. ›

Mexican President Claudia Sheinbaum has announced a proposed federal tax incentive aimed at attracting more domestic and international film and streaming projects to shoot in Mexico. The plan includes a tax credit of up to 30% on qualifying production expenditures. However, Illinois continues to operate from a more established incentive and infrastructure base, with recent enhancements to its production tax credit program through Senate Bill 1911. Illinois remains a top U.S. production destination, combining competitive incentives with world-class crews, facilities, and a proven track record.

Why it matters

Mexico's new incentive is part of a broader strategy to expand its audiovisual sector, but it is still in the early implementation phase. Illinois, on the other hand, has a long-standing and recently strengthened production tax credit program that has helped cement its position as a production powerhouse, particularly for high-budget studio projects and television production.

The details

Mexico's proposed cinema tax incentive includes a credit of up to 30% on eligible production spending incurred in Mexico, capped at 40 million Mexican pesos (about $2.5 million). Productions must source at least 70% of goods and services domestically and include participation from a Mexican production company. In contrast, Illinois' recently expanded incentive program offers a 35% credit on Illinois resident labor expenditures, a 35% credit on qualified spending with Illinois vendors, and a 30% credit on wages paid to non-resident crew and talent, with additional bonuses available.

  • In mid-February 2026, Mexican President Claudia Sheinbaum unveiled the proposed federal tax incentive.
  • Illinois' enhanced production tax credit program through Senate Bill 1911 is scheduled to take effect on July 1, 2025, and is currently set for legislative renewal in 2039.

The players

Claudia Sheinbaum

The President of Mexico, who announced the proposed federal tax incentive aimed at attracting more filming in Mexico.

Salma Hayek

A Mexican actress and producer who publicly supported the announcement of Mexico's new cinema tax incentive.

Illinois

A U.S. state that continues to operate from a more established incentive and infrastructure base for film and television production, with recent enhancements to its production tax credit program.

Got photos? Submit your photos here. ›

What they’re saying

“Mexico has officially entered the global production incentive race with the announcement of a new national cinema tax credit, but the move is not expected to shift the competitive landscape for established U.S. production hubs like Illinois.”

— Barbara Roche, Author (reelchicago.com)

What’s next

More information on the eligibility criteria, claiming process, and detailed guidelines for Mexico's cinema tax incentive is expected once the legal framework is formally published.

The takeaway

While Mexico's new incentive aims to attract more filming, Illinois remains a top U.S. production destination due to its competitive and recently strengthened tax credit program, world-class production infrastructure, experienced crews, and proven track record of supporting high-budget studio projects and television production.