On 07.31.2013, the State of Minas Gerais enacted Law No. 20,824/2013, which “amends Laws No. 6,763, of December 26, 1975, 14,937, of December 23, 2003, and 14,941, of December 29, 2003, revokes a provision of Law No. 15,424, of December 30, 2004, grants benefits to sports projects, among other provisions”.
This Law authorized the State of Minas Gerais to grant up to 100% of presumed ICMS credit in remittances. This measure was taken, according to the state, with the purpose of ensuring tax isonomy, competition equality and free competition while last the effects of assumption of constitutionality of a rule issued by another State granting a tax benefit not provided by complementary law or CONFAZ covenant. It also granted a reduction of ICMS rate to 12% in transactions with products remitted to public organs, hospitals, clinics and similar establishments.
For intrastate transactions with concrete, cement or asphalt acquired by the Public Administration or by a constructor that will use it in public works, this rule authorized reduction of the applicable rate to 0%.
This reduction to up to 0% of ICMS was also provided for the supply of parts, components and tools used for connection and transmission infrastructure necessary to link solar, wind, biomass, biogas and hydraulic (when generated by small hydroelectric plants) power enterprises to the National Interconnected System.
Finally, Law No. 20,824/2013 allows the State of Minas Gerais to grant ICMS
exemption on the supply of solar, wind, biogas and biomass from reforesting or urban or animal residues, and hydraulic power by small hydroelectric plants.
(Law No. 20,824, 07.31.2013, Official Gazette of 08.01.2013. Available at:
http://www.fazenda.mg.gov.br/empresas/legislacao_tributaria/leis/2013/l20824_2013.htm. Accessed in August, 2013).