Brazil does not yet have a national electromobility law, but its position as South America’s largest automotive market and the rising number of electric vehicles are driving major regulatory changes.
At all government levels—federal, state, and municipal—proposals are emerging to support this energy transition.
A recent analysis reveals how this new regulatory ecosystem is taking shape in different regions of the country.
Key federal initiatives
In the Chamber of Deputies, one of the most ambitious bills is PL 497/2025, introduced in March. It proposes income tax deductions for individuals and companies that invest in EV charging infrastructure and renewable energy.
Eligible investments include:
- Installation of public or shared electric vehicle chargers
- Solar or wind systems connected to charging points
- Stationary batteries or open-access microgrids
Another significant proposal, PL 158/2025, aims to ensure that apartment owners can install private EV chargers in their parking spaces, provided technical standards are followed.
At the same time, PL 2156/2021 is in its final stage. It encourages—rather than mandates—the installation of private EV chargers in new buildings, and outlines a future National Electromobility Policy.
This national framework would:
- Offer incentives for EV purchases
- Promote public charging infrastructure
- Support combustion-to-electric vehicle conversion
- Regulate electricity sales and EV charging operations
States offer tax benefits to attract EV investment
Several states are proposing or restoring tax exemptions to mitigate the impact of reintroduced tariffs on imported electric and hybrid vehicles (set to rise from 0% to 35% by 2026).
- Mato Grosso do Sul: considering a 70% IPVA (vehicle tax) reduction for EVs
- Piauí, Maranhão, and Ceará: full IPVA exemption
- São Paulo: evaluating reinstating 50% IPVA discounts for EVs
In Santa Catarina, the state plans to expand its charging network from 35 to 100 stations by the end of 2025, backed by the Electric Route program and partnerships with municipal governments.
Local policies for urban charging
Municipalities are also legislating to expand urban charging infrastructure, a critical factor for large-scale EV adoption.
In Curitiba, a bill would require new shopping centers and public parking lots to install one charger for every 50 spots.
São Paulo has already updated its building code to mandate EV-ready infrastructure in new developments.
Meanwhile, Porto Alegre is analyzing a bill that would require public transport operators to transition to electric buses: 50% of the fleet in 10 years, and 100% in 20 years.
Challenges and outlook
The sector faces uncertainty with the upcoming tax reform. Starting in 2027, a “selective tax” may apply to polluting goods—potentially including EVs, due to battery-related environmental impacts.
Still, the market moves forward. In March 2025, Brazil registered 14,380 electrified light vehicle sales, a 31.5% year-over-year increase, according to ABVE.
As Brazil’s EV ecosystem evolves, legislation will shape its pace and accessibility, determining how electromobility takes hold nationwide.
