Brazil's Chamber Approves Permanent Tax Incentives for Recycling Industry

The Brazilian Chamber of Deputies passed a bill that makes fiscal incentives for the recycling sector permanent, ending the deadline set by Law No. 14.260/2021. The amendment raises the corporate income‑tax deduction for companies that fund approved recycling projects from 1 % to 4 % and keeps the option for individuals to allocate part of their tax return to the sector. Lawmakers say the change will give legal certainty to firms, investors and waste‑collector cooperatives, encouraging longer‑term investments in collection, processing and circular‑economy projects.

In a related measure, the Chamber’s Committee on Mines and Energy approved PL 223/2025, creating the “Recicla e Cash” program. The proposal offers consumers cash‑back credits redeemable as discounts on electricity and water bills when they properly dispose of recyclable waste. Supported by the National Confederation of Commerce, the bill includes safeguards to protect utility concessionaires and mandates municipalities to coordinate with low‑income waste‑collector cooperatives. The bill now moves to the Environment Committee for further review.