São Paulo's ISS tax and the solar benefit the committee removed

The original text of Bill 1,112/2025 provided for a reduction of up to 20% in the ISS rate for solar energy companies in São Paulo. The Constitution and Justice Committee removed the tax benefit from the substitute text and kept the rest: solar plants in bus garages and terminals, use of public areas and energy purchase and sale contracts for transport.

What is not stated is which regulatory deadline remains open. Normative Ordinance 50/GM/MME of 27 September 2022 has already allowed, since 1 January 2024, Group A consumers throughout the National Interconnected System to buy energy from any authorised supplier, so the PPA does not depend on the municipal law.

What the proposal adds is access to public areas through a public call and a concession-of-use contract or surface right, subject to approval by the other committees and to public hearings. A bill without an effective date does not enter investment modelling.

What unlocks solar plants in bus garages in the capital is the date of the public area use contract, set by the end of the legislative process.