Economic reactivation after devastating earthquakes

Mexico's Ministry of Finance and Public Credit informed that measures for housing reconstruction along with tax benefits for high marginalization sites for those affected by the recent earthquakes will be implemented
Backhoe - Photo: Nacho Doce/REUTERS
03/10/2017
17:00
Leonor Flores
Mexico City
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Mexico's Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público abbreviated SHCP) informed that measures for housing reconstruction along with tax benefits for high marginalization sites for those affected by the recent earthquakes that hit the country will be implemented in order to boost economic activity in the country.

This initiative is a comprehensive support scheme that will facilitate housing reconstruction and repair through preferential loans from federal, state, and municipal resources provided by Mexico's Federal Mortgage Society (Sociedad Hipotecaria Federal abbreviated SHF) and the country's Housing Operation and Bank Financing Fund (Fondo de Operación y Financiamiento Bancario a la Vivienda abbreviated Fovi).

The initiative is directed to Mexico City, Morelos (Cuernavaca and Jiutepec), Puebla (Cuautlancingo, Cholula, San Martín Texmelucan, and San Miguel Xoxtla), and Tlaxcala (Papalotla de Xicohtén, Xicohtzinco, and Apizaco).

SHCP said that the program will be applied after the damage census, the respective structural audits and the signed collaboration agreements with the local and federal governments are available.

Preferred mortgage loans will be offered for the acquisition and total and partial housing reconstruction.

In addition, people who suffered property loss and who have the documentation to support their loss in the aforementioned cities will be exempt from the Income Tax (Impuesto Sobre la Renta abbreviated ISR) in the lot sale income if the amount does not exceed 700,000 investment units (Unidades de Inversión abbreviated UDIS) equivalent to MXN$4,750,740. If the lot sale income exceeds the amount previously mentioned, the ISR payment will correspond only to the gain above the threshold.

For the rest of the affected municipalities in Chiapas, Oaxaca, Guerrero, Puebla, Tlaxcala, and the State of Mexico, the victims will receive direct resources from the country's National Disaster Fund (Fondo de Desastres Naturales abbreviated Fonden).

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