The tax incentive law 14,260 created in 2021, has as its main objective to boost the recycling chain in the country through tax deductions from companies and legal entities, directing resources to approved projects.
The logic of this new law is very similar to the Rounet culture incentive law, where companies will be able to deduct up to 1% of their profit and individuals up to 6% to transfer to projects approved by the law. The law created by Deputy Carlos Gomes still needs to be enacted and have its criteria for the volume of resources and logic for approving projects established.
The Deputy who created the Law is a former waste collector and confessed in a live broadcast the main objective of this law:
“Our dream is to transform cooperatives, where today they only segregate and separate, into small industries throughout Brazil…”
Law 14,260 had initially been vetoed in its entirety by the president of the republic, but several of the vetoes fell in the Senate chamber due to the assessment that its implementation would be beneficial for Brazil.
According to the author of the law himself, he believes that the articulations for the promulgation and effective application of the law will continue in 2022.
