The Federal Senate approved, this Wednesday (19), the basic text of Bill 2,308/2023 that establishes the legal framework for low-carbon hydrogen. The agenda returns to the House Plenary for consideration of the highlights.
The PL defines rules and benefits to stimulate the production and commercialization of hydrogen in the country, putting Brazil on the map of what could be one of the routes for the decarbonization of several industrial, transport and even agricultural sectors.
“The approval of this PL in the Senate shows how the Government, Congress and the private sector are moving in the same direction: from promoting the green agenda combined with strengthening the industry with a focus on innovation and sustainability”, stated the vice-president and minister of MDIC, Geraldo Alckmin.
“Hydrogen is considered by many to be the fuel of the future. With the advancement of regulation in this market, we are placing Brazil in an important role in decarbonization and leveraging industrial production with a low carbon footprint”, said the Secretary of Green Economy, Decarbonization and Bioindustry at MDIC, Rodrigo Rollemberg.
The base text provides for the creation of the National Low Carbon Emission Hydrogen Policy, which comprises the National Hydrogen Program (PNH2), the Low Carbon Emission Hydrogen Development Program (PHBC), the Brazilian Hydrogen Certification System and the Special Incentive Regime for Low Carbon Emission Hydrogen Production (Rehidro).
LOW CARBON HYDROGEN
According to the text approved by the Senate, low-carbon hydrogen will be considered to be hydrogen that emits, during the production process, a maximum of four kilograms of carbon dioxide per kilogram of hydrogen generated.
RENEWABLE HYDROGEN
The text establishes the term “renewable hydrogen” as that produced exclusively with renewable energy sources. Molecules acquired from wind or solar energy will be named “green hydrogen”.
MANAGEMENT COMMITTEE
The guidelines for implementing the National Low Carbon Emission Hydrogen Policy will be defined by the Management Committee of the National Hydrogen Program (Coges-PNH2), which will be made up of 15 representatives from federal Executive Branch bodies, one representative from the states and the District Federal; a representative of the scientific community; and three representatives from the production sector.
REHYDRO
Rehidro suspends the incidence of PIS/Pasep and Cofins, for five years, for the purchase of raw materials, intermediate products, packaging, stocks and construction materials made by qualified low-emission hydrogen producers. The suspension will also affect the provision of services and the acquisition of new machinery and equipment and construction materials.
Companies responsible for the transport, distribution, packaging, storage or sale of hydrogen and those that produce biogas and electrical energy from renewable energy sources for the production of hydrogen will also be able to participate in the Special Regime.
Companies benefiting from Rehidro will be able to issue debentures subject to lower taxation (incentivized debentures).
REIDI
The text approves the inclusion of companies benefiting from Rehidro in the Special Incentive Regime for Infrastructure Development (Reidi), which includes companies in the transport, ports, energy, basic sanitation and irrigation sectors with an approved project for infrastructure implementation.
QUALIFICATION
Production companies must use a minimum percentage, not yet defined, of goods and services of national origin in the production process. They will also have to limit the portion of production to be exported, in addition to proving investment in research and innovation.
Companies will be able to qualify within five years to receive the benefit. Companies that qualify for taxation under Simples Nacional are not entitled to qualification. Those installed in Export Processing Zones (ZPEs) will be able to participate in the Special Regime, without giving up the tax benefits they already have.
TAX CREDITS
The text provides for the granting of tax credit through the Social Contribution on Net Profit (CSLL) levied on the purchase and sale operations of low-emission hydrogen and its derivatives produced in the country, as long as the projects stimulate technological development and contribute to the regional development and the diversification of the industrial park and with damage reduction and adaptation to climate change.
The credit will be granted within 60 days of the issuance of the sales invoice and may be used as a resource to pay any federal tax. In the case of companies without debt, the credit will be reimbursed in cash.
PHBC
The PL creates the Low Carbon Emission Hydrogen Development Program (PHBC), which aims to be a source of resources for the energy transition based on the use of low-emission hydrogen.
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