On August 2, 2024, Brazil enacted Law No. 14.948/2024, establishing a legal framework for low-carbon hydrogen and the National Policy for Low-Carbon Hydrogen. The law aims to facilitate the energy transition by providing a regulatory structure. One key aspect is the creation of the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro) to incentivize industry participation in hydrogen production. However, the presidential veto of Articles 30 through 35 due to ambiguity raised concerns about the tax credits linked to the Social Contribution on Net Profit (CSLL). To address these issues, Deputy José Guimaraes proposed Bill of Law No. 3.027/2024 to ensure clarity and compliance regarding tax incentives. The legislation also grants the National Agency of Petroleum, Natural Gas and Biofuels (ANP) the responsibility to regulate, authorize, and supervise the hydrogen supply chain and its derivatives in Brazil, ensuring a well-controlled transition towards low-carbon hydrogen production.