Law for the Competitiveness and Economic Development of Baja California

I. Tax Free Benefits given to new and established companies that:

A) Exhibit a new, expansion or technological investment project*.

They may be rewarded with a:

• 25 and up to 100% exemption on the Payroll Tax, during a period of 3 to 5 years.
• 20 or 50% exemption on the Water Connection System Fee.

* The following aspects evaluate the investment project:

• Number of jobs, incorporation of students in the production processes as well as disable and 60+ year-old people.
• Quality of jobs.
• Amount and origin of the investment.
• Amount invested in technology.
• National and Local Suppliers.
• Market access.
• Place of establishment.

B) Reuse or treat 100% of their water consumption, with a 30% exemption from the monthly payment as long as the company reuses or treats the water.

C) Hire disable or 60+ year-old people, with a 100% exemption in the Payroll State Tax as long as they are hired.

II. Additional Non-Tax Benefits:

A) Public Infrastructure. There is a public fund (FOINFRA) to support public infrastructure required for the establishment or expansion of strategic companies.

B) Enterprise Development. Direct support for small and medium enterprises in:

• Training
• Specific Consulting
• Financial aid
• Information regarding statistics, economics and data for the decision-making process.
• Articulation of programs, products, tools and actions in order to increase their competitiveness

C) Assistance. An investment promoter will be assigned to your project to serve as a liaison between your company and the governmental federal, state, and municipal offices.

D) Market Access. The Secretariat of Economic Development in coordination with other authorities will support small and medium companies in different markets by:

• Providing technical assistance to companies with high exportation possibilities
• Promoting their products in national and international fairs and shows.