Move: understand the program that will give up to R$19 billion to the automotive industry | Automotive industry

After a long discussion on points of National Green Mobility and Innovation ProgramMover, automakers can now qualify to receive R$19.3 billion in tax incentives until 2028. The regulation was presented on Wednesday (26) by President Luiz Inácio Lula da Silva (PT).

The objective of the Mover Program is to expand the decarbonization of the fleet and encourage the production of new technologies, whether for passenger cars, buses and trucks. Through it, automakers installed in the country promise complete a cycle of R$117 billion in investments valid between 2021 and 2030.

The concierge with the rrequirements for qualification and granting of credits was signed by the vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin. Among other aspects, the text regulates minimum investments in research and development, monitoring systems and penalties in case of non-compliance with obligations.

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To access credits, companies must spend at least between 0.3% It is 0.6% of Gross Operating Revenue. Each real invested will entitle you to between R$ 0.50 It is R$ 3.20 of credits, which can be used to deduct any taxes administered by the Federal Revenue Service.

For the Minister of Finance, Fernando Haddad, with Mover, the industry should see a 20% increase in car production in the country, surpassing the mark of 2.7 million units by next year.

According to the government, regardless of whether or not they qualify to take advantage of the program’s credits, all companies must comply with the mandatory requirements. There are new requirements and metrics, such as the recyclability criterion and the measurement of carbon emissions throughout the entire propellant cycle and at all stages of vehicle production and disposal.

The government signed the provisional measure (MP) that created Mover in December last year. Therefore, the regulation is already in force. Last week, a new bill (PL) establishing the program was sent to Congress, running in parallel with the MP. The texts are identical and, according to the government, it will be up to parliamentarians to decide the best way to forward the matter.

Mover also includes minimum recycling limits in the vehicle manufacturing process and charges less tax to those who pollute less, creating the Green Industrialized Products Tax (IPI). According to Alckmin, the IPI Verde regulation is not yet finalized and should be presented at another time.

It is expected, however, that it will change the tax calculation structure, replacing the current system, which takes into account the cubic capacity of engines, for another that only considers emissions and thermal efficiency rates — that is, how much an engine pollutes and how much it can use its own energy without waste.

Understand the Mover Program

The Mover Program is an expansion of the old Rota 2030, created in 2018 — and which, in turn, replaced Inovar Auto, from 2012. In Rota 2023, the average annual tax incentive was R$1.7 billion until 2022.

According to the government, all automotive manufacturers installed in Brazil have the goal of reducing carbon emissions by 50% by 2030, establishing minimum requirements so that vehicles leave factories more economical, safer and less polluting.

Rules

• Legal entities that manufacture automotive products in Brazil (vehicles, auto parts, self-propelled machines, systems and strategic solutions for mobility and logistics, as well as inputs, raw materials and components) may qualify for the incentive regime.
• Must have technological development and production project.
• Develop research, development, innovation or engineering services in the country for the automotive chain, with integration into global value chains.
• Be taxed under the real profit regime.
• Have a research and development cost center.
• Make a commitment to make mandatory expenditures on research and development, in the minimum percentages required, levied on the total gross revenue from the sale of goods and services, excluding taxes and contributions levied on the sale.

The qualified company must submit, annually, by July 31st of the subsequent calendar year, a monitoring report. The license is valid until January 31, 2029. Failure to comply with requirements, commitments, conditions and additional obligations may result in cancellation of the license with retroactive effect or suspension of the license.

Investment projects must identify the products or systems and strategic solutions for mobility and logistics that will be produced, with description and technical characteristics, in addition to foreseeing new investments in fixed assets and in research and development.

Project qualification criteria

• Generation of increasing levels of productivity and competitiveness, incorporating product technologies and production processes compatible with the state of the art and technique, and contemplating the training and qualification of human resources for scientific and technological development.
• Contribution to achieving the Mover Program guidelines.
• Promotion of qualified labor.

Complementary projects

In addition to the Mover Program, the Brazilian government wants to stop the national deindustrialization process with another program, Nova Indústria Brasil. This provides for the granting of special lines of credit, through the National Bank for Economic and Social Development (BNDES) and tax incentives for the renewal of machinery.

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