Brazilian Senate Advances Bill Protecting Research and Technology Tax Incentives
Brazil's Senate approves a bill exempting research and technology tax incentives from fiscal cuts to protect innovation funding.
- • Brazil’s CCT approved a bill exempting research and technology incentives from tax benefit reduction rules.
- • The bill protects the Lei do Bem program from fiscal austerity measures of Complementary Law 224 of 2025.
- • In 2024, the Lei do Bem’s R$12 billion tax waiver generated R$51.6 billion in innovation investments.
- • The Federal Court of Accounts classifies these incentives as low risk, emphasizing their fiscal prudence.
Key details
The Brazilian Commission of Science and Technology (CCT) has approved a complementary bill that exempts incentives for research, science, and technology from the tax benefit reduction rules contained in Complementary Law 224 of 2025. This new law, enacted in December 2025, aimed to reduce public spending by cutting various fiscal incentives but would have affected the Lei do Bem, a key tax benefit program for companies engaged in research, development, and technological innovation.
The bill, PLP 6/2026, introduced by Senator Izalci Lucas (PL-DF) and reported by Senator Marcos Pontes (PL-SP), ensures that the Lei do Bem remains untouched by the general fiscal austerity measures. It now moves to the Committee on Economic Affairs (CAE) for further review.
Senator Izalci Lucas emphasized the critical role these incentives play in stimulating technological innovation by reducing the private sector’s cost of innovation and encouraging business investment in technology. He highlighted that in 2024, the Lei do Bem’s R$ 12 billion tax waiver led to R$ 51.6 billion invested in innovation—more than quadruple the value of the benefits granted. This fiscal renunciation represented approximately 1.77% of all federal subsidies that year.
Additionally, the Federal Court of Accounts (TCU) classified these innovation incentives as “low risk” within the country's fiscal framework, underscoring the program’s safety and importance for public policy. Senator Marcos Pontes noted that the Lei do Bem generates around R$ 30 billion annually in research and development investments, backed by about R$ 8 billion in government incentives. He asserted that preserving this incentive is vital because it ensures significant returns on public investment and fosters competitiveness, productivity, and skilled job creation.
This legislative movement reflects a broader commitment to safeguarding Brazil’s innovation ecosystem by balancing fiscal responsibility with the need to maintain mechanisms that encourage technological advancement and economic development.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
