Brazil approves tax incentives for biodiesel and ethanol ships

Brazil's Economic Affairs Commission (CAE) has approved a proposal to provide tax incentives for tanker ships and maritime support vessels designed or adapted to use biodiesel, ethanol, or fuel blends. The measure, part of Bill 1.402/2026, aims to stimulate fleet renewal and reduce maritime emissions.

The proposal introduces “accelerated depreciation” for these vessels, allowing companies to anticipate the accounting of asset value loss to reduce their tax base. For new vessels, the benefit applies to the acquisition value, while for adapted vessels, it applies to the documented cost of the conversion.

The incentive is set to last five years. The Ministry of Ports and Airports will monitor the measure and publish execution reports every three months. Estimates suggest the program could impact between 29 and 86 vessels over five years, with a goal of reducing greenhouse gas emissions by more than 250,000 tons.