Brazilian Chamber makes recycling tax incentives permanent

The Brazilian Chamber of Deputies approved Project Law 1361/25, which makes the recycling‑industry incentives established by Law 14.260/21 permanent and raises the allowable income‑tax deduction for companies from 1 % to 4 % of tax due. The measure, authored by Deputy Ronaldo Nogueira (Republicanos‑RS) and reported by Deputy Arnaldo Jardim (Cidadania‑SP), will remain in force until 31 December 2026 before being sent to the Senate.

The law lets corporations taxed on real profit deduct contributions made to Ministry‑approved recycling projects, covering training, technical assistance, micro‑enterprise incubation, infrastructure, equipment purchase and support for waste‑picker cooperatives. Jardim said the change corrects a “relevant asymmetry” with other sectors and will generate positive fiscal externalities by reducing public waste‑management costs and boosting income in the recycling chain. The proposal also includes a clause tying the total fiscal concession to the Annual Budget Law. While it entails a predictable loss of revenue, the impact is described as limited.

The approved text adds two municipal‑representative slots to the National Recycling Incentive Commission (CNIR). The measure now proceeds to the Senate for further consideration.