Brazil enacted Complementary Law No. 235/2026 on August 27ᵗʰ, 2026. As part of a broader package of fiscal measures, the law includes specific provisions to support domestic production of agricultural inputs, including fertilizers, fertilizer feedstocks, bioinputs, biofertilizers and soil remineralizers.
Under Articles 7–10, the Federal Government may grant tax credits to eligible projects through December 31ˢᵗ, 2031, with the aim of expanding domestic supply and supporting price stability.
The program provides approximately US$ 192 million per year in tax credits from 2027 through 2031. The annual limit may be increased by an additional US$ 192 million, potentially reaching approximately US$ 385 million per year, subject to fiscal and budgetary rules.
Eligible agricultural inputs include:
• Fertilizers such as urea, ammonium nitrate, MAP, DAP and SSP
• Fertilizer feedstocks such as ammonia, sulfur, phosphate rock, phosphoric acid and sulfuric acid
• Agricultural bioinputs
• Biofertilizers
• Soil remineralizers
Tax credits may be offset against federal tax liabilities or reimbursed in cash.
Approved projects may also benefit from an exemption from Brazil’s Additional Freight Charge for the Renewal of the Merchant Marine – AFRMM from 2027 through 2031. The exemption is limited to approximately US$ 38.5 million per year, or approximately US$ 192 million over the five-year period.
The law is already in force, but implementation of these incentives will depend on further regulation. Projects must be formally qualified by the Federal Government and selected through a competitive process.
Source: Complementary Law No. 235/2026, published in the Official Gazette of Brazil on August 28ᵗʰ, 2026.