Deduction of energy generation expenses from income tax is approved in the Chamber

The Chamber of Deputies' Mines and Energy Committee approved a bill that allows deductions for expenses with equipment for generating renewable energy
Deduction of energy generation expenses from income tax is approved in the Chamber
Photo: Zeca Ribeiro / Chamber of Deputies

One week after the Federal Government announced the exemption of IR (Income Tax) for those who earn up to R$5 per month, the Legislative Branch also wants to make its contribution. The Mining and Energy Committee of the Chamber of Deputies approved, this Wednesday (04), a bill that allows the deduction of expenses with equipment for generating electricity from renewable sources.

Expenses with energy generation equipment may be deducted from income tax

The matter had been on the agenda last week, but the vote was postponed due to a request for review. As this is a matter subject to conclusive consideration by the committees, it will not need to be analyzed by the Chamber's Plenary. However, it will still have to the Finance and Taxation and Constitution and Justice and Citizenship committees.

The text, approved at the Mines and Energy Commission, establishes the rate of 8% for the deduction with the purchase and provision of services intended for the construction or assembly of facilities for the use of solar, wind, biogas and other alternative renewable energy sources used in the generation of electrical energy.

The rapporteur of the project, Representative Keniston Braga (MDB-PA), highlighted that Brazil's great advantage is having multiple renewable sources, which can be used to produce clean and low-cost electricity. He also mentioned the contribution to energy security, through the diversification of the electricity matrix.

“This proposal aims to encourage citizens to take advantage of this valuable potential. It will certainly have an important impact on maintaining the virtuous growth of micro and mini distributed generation from renewable sources. In this way, we will be able to contribute to energy security, with the greater use of sources such as solar photovoltaic, which complements our water resources,” said Braga. 

“We will thus be able to reduce the need for thermoelectric generation from fossil fuels, with very favorable environmental impacts, and contribute to the generation of jobs and income, through the entire production chain associated with these projects,” he highlighted.

The rapporteur was responsible for including biogas in the original bill through an amendment. The author, Congressman Átila Lins (PSD-AM), emphasized that the initiative aims to provide a “significant increase” in the production of electricity in a decentralized manner, from renewable sources, “with significant environmental, economic and social benefits”.

If it es through the Chamber of Deputies and subsequently through the Senate and is approved by the President, the measure will allow expenses with equipment for generating electricity to be added to other items that are already discounted from Personal Income Tax, such as expenses with education, health, payments to dependents and social security contributions.

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Photo by Manoel Guimarães
Manoel Guimarães
He worked as a reporter, radio announcer and communications advisor. ages in newsrooms and the three Powers of the Republic. He has been following the electricity sector since 2016.

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