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ARTICLE · 03 OCTOBER 2024

Low-Carbon Hydrogen Development Program Sanctioned And Published

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The Brazilian Federal Government has enacted and published Law No. 14.990/2024, which establishes the Low-Carbon Hydrogen Development Program (PHBC)...

BrazilEnergy and Natural Resources

The Brazilian Federal Government has enacted and published Law No. 14.990/2024, which establishes the Low-Carbon Hydrogen Development Program (PHBC), in line with similar international policies such as the US Inflation Reduction Act and the REPowerEU. This follows in the footsteps of Law No. 14,948/2024, which established the Low-Carbon Hydrogen Legal Framework in Brazil.

PHBC is intended to provide financial subsidies through the concession of tax credits to certain low-carbon hydrogen projects. The program was initially addressed in the Bill of Law which resulted in Law No. 14,948/2024, but the statute was vetoed by the President as it failed to indicate which specific tax would be reduced by the tax credits. Law No. 14.990 expressly indicates that the tax credits will reduce the Social Contribution on Net Profit.

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