Brazil’s Chamber Approves PRESIQ, Overhauling Incentives for the Chemical Industry

Overview

• The bill (PL 892/2025) creates two tracks: automatic industrial eligibility for producers using petrochemical feedstocks or natural gas, and an investment track requiring authorization by the Ministry of Development, Industry, Trade and Services.
• Eligible firms can claim financial credits of up to 6% on input purchases or up to 3% on gross revenue from new investments, which can be offset against federal taxes and require a dedicated allocation to research and development.
• Annual limits are set at R$2.5 billion for the industrial track and R$500 million for the investment track, with the program running through 2031.
• The measure replaces the current incentive regime that expires in 2026 and is designed to boost competitiveness, expand production and reduce carbon and energy costs.
• Approved in a symbolic vote with opposition only from the Novo caucus, the text now advances to the Senate for review and subsequent regulatory implementation.