MP 1,307: Use of Renewable Energy and Tax Benefits for Service Providers and Exporters in ZPEs

On July 21, 2025, Provisional Measure No. 1,307/2025 ("MP") was published in the Federal Official Gazette, amending Law No. 11,508/2007, which provides for the tax, foreign exchange and administrative regime of Brazilian Export Processing Zones ("EPZs"). The MP:

• Establishes the requirement that all electricity consumed by companies located in EPZs must originate from renewable power plants that have started operating after July 21, 2025 (the date of publication of the MP). This requirement applies to all projects located in EPZs, such as data centers and low-carbon hydrogen projects;
• Expressly allows service providers¹ that operate on behalf of service-exporting companies located in EPZs to also qualify for the special EPZ regime, provided that: (i) they maintain a contractual relationship with a company authorized to operate in EPZs; and (ii) they have their project approved by the National Council of Export Processing Zones (“CZPE”). Before this change introduced by the Provisional Measure, the benefit was only applicable to service providers acting on behalf of goods-exporting companies located in EPZs.

The MP provides legal certainty by determining that the act that authorizes the installation of a company in an EPZ will ensure the treatment set forth in Law No. 11,508/2007 for a period of 20 years. In relation to service providers for companies in EPZs, such treatment is guaranteed for the remaining term granted to the contractor to operate in EPZs, and is automatically terminated upon the end of the contractual relationship with the EPZ-authorized company.

Exceptions to the mandatory use of renewable energy:

According to the MP, the obligation to use new renewable energy does not apply to: 

• Projects that have been approved by the CZPE, as defined by Law No. 11,508/2007, prior to July 21, 2025; and
• The amount of power generated for self-consumption from plants located in the respective EPZ.

Generating plant located in the EPZ?

It is important to note that the MP does not require that the new renewable power plants that will supply the new projects located in the EPZs be located in the respective EPZ. Thus, a new project to be installed in an EPZ in the Northeast Region of Brazil may purchase renewable energy from plants installed in any other location, under a self-production regime or in the free market, provided that its commercial operation starts after July 21, 2025.

Our Vision: Data Centers in EPZs

Although the Federal Government previously signaled its intention to promote a broader incentive policy for the data center sector, Provisional Measure No. 1,307/2025 has, for now, brought a targeted incentive limited to service providers contracted by data center companies² located in EPZs.

The MP takes immediate effect and will remain in force for 60 days from its publication, expiring on September 19, 2025, and may be extended for an equal period. If not converted into law by the National Congress, its validity will end on November 18, 2025.

¹ Pursuant to article 21-A, paragraph 2, of Law No. 11,508/2007, the services benefited are the following: "I - Research and Development (R&D) services; II - engineering and architecture services; III - scientific and other technical services; IV - branding and marketing services; V – specialized project services (design); VI – Information Technology (IT) services; VII – maintenance, repair and installation services; VIII – water and effluent collection and treatment and environmental services; IX – cargo transportation and transportation support services; X - other services established by the CZPE."

² Including, for example, software license providers and SaaS service providers (including security services), connectivity providers, cooling infrastructure services, construction/engineering services.