Progress in the House of Representatives on a bill that protects solar energy and preserves tax exemption for solar inverters from import duties.
Brazil’s energy transition gained a significant boost in the National Congress. The Economic Development Committee gave the green light to a legislative proposal aimed at shielding the photovoltaic solar energy market from a sudden increase in essential inputs.
The bill’s progress represents a direct legislative response to a directive from the Federal Government. The measure under discussion blocks the effects of a MDIC regulation that had cut crucial tax incentives for importing equipment essential to clean energy generation.
Impact on investment and employment
The political coordination around the issue arose from the urgent need to protect the national green economy. According to the bill’s author, Representative Delegado Caveira (PL-PA), the executive’s revocation of the tax incentive threatens R$ 20 billion in investments and nearly 160,000 jobs in the solar energy sector.
Lafayette cited data from ABSOLAR (Brazilian Association of Photovoltaic Solar Energy) indicating that the tax exemption cut directly affects 5.78 GW of installed capacity in photovoltaic projects.
The report also emphasizes that solar energy plays a central role in Brazil’s electric grid and in meeting Paris Agreement targets.
The proposal will still be reviewed by the Finance and Taxation Committee. It will then be considered by the House plenary. To permanently suspend the regulation’s effects, the bill must be approved by both the House and the Senate.