Dear clients and friends,

On August 25, an initiative was published in the Federal Parliamentary Gazette proposing the addition of Section XVI to Article 34 of the Income Tax Law (“LISR” per its acronym in Spanish), which aims to allow for the immediate deduction of 100% of investments in machinery and equipment used for electrical energy storage systems (“SAE” per its acronym in Spanish).

Currently, the LISR only recognizes immediate deductions for clean energy generation equipment and SAE integrated from the beginning of projects, excluding those installed later. The initiative aims to address this limitation and encourage companies in all sectors to incorporate SAE into their infrastructure, recognizing them as crucial for the energy transition.

If approved, this reform would modernize the energy sector by reducing investment recovery times, strengthening the transition to renewable energies, and generating savings for users.

For any questions or advice regarding this matter, our team of experts is available at the following email addresses:

Paul Kavanagh: paul@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx