The Environment and Sustainable Development Committee of the Chamber of Deputies approved a bill that makes permanent the tax incentives provided for projects in the recycling production chain approved by the Ministry of Environment and Climate Change.
In practice, the approved text excludes from the Recycling Incentive Law (Law 14,260 of 2021) the 5-year period for people and companies to deduct from Income Tax amounts spent on recycling industry projects.
REPORTER’S VERSION AND DELAY
The commission approved the version of the rapporteur, deputy (PT-SP), for PL 1,361 of 2025, by the former deputy (Republicanos-RS), currently in the substitute position.
The rapporteur stated that the original law was delayed for more than 3 years before it was regulated, which drastically reduced the benefit’s effectiveness time.
“As only in December 2024 Ibama [Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis] regulated the standard, only a period of 2 years remained to take advantage of this incentive”, stated Tatto.
CHANGE AND NEXT STEPS
The main change introduced by the substitute is the inclusion of 2 representatives from national associations of municipalities in the committee responsible for monitoring and evaluating recycling projects.
The proposal will be analyzed by the Urban Development, Finance and Taxation and Constitution and Justice and Citizenship committees. To become law, the text must be approved by the Chamber and the Senate.
This text was originally published by on June 15, 2026, at 4:30 pm. The content is free for republication, the source is cited, and has been adapted to the standard of Poder360.
