The Law for the Production and Consumption of Biofuels (Decree 144-2007) declares the development of projects that use biomass of forest origin for energy production to be of public interest. It provides the legal framework for the production of raw material and the distribution, commercialization and use of biofuels.
The Decree 144 of 2007 provided fiscal incentives for biofuel producers, including 12-year exemptions for income and property taxes, and import duty for equipment. It also exempts biofuels from a social tax for 15 years, and after that sets it at 25% of the tax for fossil fuels. The law states that local content must be at least 51% of feedstock for producers to qualify for the exemptions above.The law also creates a registry of biofuels producers.