Brazil

Brazil

Introduces tax credits for low-carbon hydrogen

02 Aug 2024

On 27 September 2024 The Government of Brazil sanctioned Law No. 14,990/2024, establishing the Low-Carbon Hydrogen Development Program (PHCB), which includes the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro). This framework provides tax credits, awarded via a competitive process yet to be specified, to companies engaged in the low-carbon hydrogen industry. Credits will be issued from 1 January 2028 through 31 December 2032.

The program sets annual limits on total available credit amounts:

2028: R$1.7 billion (approximately $340 million) 2029: R$2.9 billion (approximately $580 million) 2030: R$4.2 billion (approximately $840 million) 2031: R$4.5 billion (approximately $900 million) 2032: R$5 billion (approximately $1 billion)

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