Last Wednesday (6), the Federal Senate approved PLP 5/2021 (Complementary Bill No. 05/2021), which provides for the extension of the validity period of ICMS tax benefits.
Since 2017, when the Complementary Law 160 / 2017 (regulated by ICMS Agreement 190/2017), the tax benefits granted by the States and the Federal District, without observing the necessary rite, such as approval by Confaz (National Council for Financial Policy), had an established validity period, i.e. , with an end date.
Einar Tribuci, a lawyer specializing in the solar energy sector and tax director at ABGD (Brazilian Association of Distributed Generation), explains that this measure aimed to put an end to the existing tax war between the states.
With the approval of PLP 5/2021, which now goes to President Bolsonaro for sanction or veto, Tribuci highlights that the measure represents hope for players of DG (Distributed Generation). Especially for those who work in the States of Minas Gerais, and consequently, Rio de Janeiro and Espírito Santo, who have adhered to the tax benefit of the pioneering State on this topic.
“If sanctioned, the measure will extend the validity period of the tax benefits established by those States until 2032, especially for shared generation projects and projects involving multiple consumer units from photovoltaic solar sources, whose installed power is less than or equal to 5MW. , as they are not covered by ICMS Agreement 16/2015”, explains Tribuci.
He explains that this occurs because the 'benefit granted by Minas Gerais in relation to distributed generation was ed and deposited in Confaz so that the deadline could not exceed December 31, 2022. However, PLP 5/2021 changes precisely this rule , expanding this horizon to 15 years from the production of effects of the aforementioned agreement, published in 2017, that is, 2032', adds the lawyer.
Tribuci also highlights that as the states of Rio de Janeiro and Espírito Santo adhered to the benefit granted unilaterally by Minas Gerais, the new rule will also apply.
“The question that remains now is whether, after the publication and regulation of the Law, any regulatory change may arise and open a window of opportunity for new states to also want to grant the same ICMS benefit that has been enshrining the implementation of larger distributed generation projects, as well as shared generation, in the states that took advantage of the hip opportunity that until then had closed on December 31st of last year. Let’s look forward to the scenes in the next chapters”, concludes Tribuci.
