New law in Minas Gerais expands tax benefits for milk producers.

Starting this week, dairy farmers in Minas Gerais will benefit from new tax rules and incentives for renewable energy in the field.

On Monday (29), Governor Mateus Simões sanctioned Law 25.933, which amends state legislation to guarantee the individual calculation of ICMS for individual rural producers with an annual production of up to 657 thousand liters of milk, even when the activity is carried out jointly with other producers.

The change benefits producers operating under models such as partnerships, joint ventures, lease agreements, and other forms of shared exploitation of rural property. With the new rule, each producer can individually choose the standard tax calculation system, provided they respect the annual production limit established by law.

In addition to tax changes, the law also modifies the state policy on renewable rural energy. The text updates the definition of renewable energy, including solar, wind, and hydroelectric sources from generating plants and small hydroelectric plants, as well as biomass and biogas.

Another new development is the inclusion of rural producers, family farmers, cooperatives, associations, and representative entities in the planning and execution of actions related to the state's renewable energy policy. This measure seeks to broaden the participation of the productive sector in formulating initiatives aimed at generating energy in rural areas.

This text was translated by machine from Brazilian Portuguese.