On August 2, 2024, Brazil introduced Law No. 14.948, signaling a significant step in the country's energy transition by laying down the legal groundwork for low-carbon hydrogen. This legislation focuses on regulating the National Policy for Low-Carbon Hydrogen and introduces the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro) to incentivize industry development. Additionally, the law entrusts the National Agency of Petroleum, Natural Gas and Biofuels (ANP) with the responsibility to oversee and regulate the hydrogen supply chain and its associated components. However, the presidential veto on Articles 30 through 35, which aimed at creating the Low Carbon Hydrogen Development Program (PHBC), highlighted issues with imprecise language concerning tax credit linkage. To rectify this, Deputy José Guimaraes proposed Bill of Law No. 3.027/2024 to establish a clear connection between the tax credits and the Social Contribution on Net Profit (CSLL). This move seeks to ensure the legality of the incentives and their proper utilization within the tax framework. Overall, Brazil's new legislation sets the stage for a more sustainable energy future and demonstrates a positive commitment to fostering low-carbon hydrogen opportunities.