Measure Seeks to Encourage the Use of Cleaner Vehicles with Approval from ALMG
In a decision that shakes up the automotive sector in Minas Gerais, state deputies approved, on June 26, 2024, the bill that guarantees total exemption from the IPVA for hybrid and electric vehicles in Minas Gerais. According to information from the Legislative Assembly of Minas Gerais (ALMG), the proposal aims to encourage the consumption of models that help reduce the emission of polluting gases. In addition, the measure comes into effect in 2025. This represents a victory for consumers and for the environment. Less polluting vehicles make cities healthier for everyone.
Economic and Environmental Benefits Gain Strength
Although the vote took place in the last week of June, the topic had already been debated since 2022. Since then, lawmakers, environmentalists, and representatives of the automotive sector have been seeking alternatives to promote the transition to a more sustainable fleet. Therefore, the IPVA exemption emerges as a concrete strategy. It makes the purchase of these models, which still have a high cost, more viable. At the same time, experts say the policy may also increase investments in the regional electricity sector. Thus, the entire production chain tends to strengthen with this movement.

How the New Exemption Works for Drivers
In addition to benefiting owners of vehicles that use alternative fuels, the new legislation creates specific criteria. It guarantees that only 100% electric or plug-in hybrid models qualify for the exemption. In this way, tax collection is not significantly compromised. The number of electric vehicles is still low compared to the total fleet in the state. For state deputy João Vítor Xavier, the bill’s rapporteur in ALMG, the initiative balances fiscal responsibility and environmental commitment. The Minas Gerais government estimates that by 2030, the fleet of electric vehicles will increase by 15% per year. This requires effective public policies.
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Expectations for Consumers and Industry
Therefore, drivers who intend to invest in cleaner vehicles can plan their acquisition already considering the exemption in 2026. According to data from the National Federation of Vehicle Distribution (Fenabrave), Minas Gerais currently has about 7,000 hybrid and electric cars in circulation. Thus, the expectation is that the incentive stimulates not only internal consumption but also the installation of more charging stations. Specialized workshops and the generation of new jobs in the green automotive sector are also expected to grow. Consequently, the entire mobility infrastructure gains momentum to meet the increasing demand.
Next Steps for the Project in Minas
Although the project was approved in two rounds, the final text still depends on the governor Romeu Zema’s sanction. According to the advisory of the Minas executives, the expectation is that the law will be sanctioned by early July 2025. This ensures its validity starting in January 2026. Meanwhile, state regulatory and revenue agencies are already organizing to adjust registration and collection systems. Thus, interested consumers should stay tuned for the upcoming updates released by the State Department of Finance. In this way, Minas Gerais consolidates itself as a reference in policies to reduce emissions. The state also encourages new technologies in transportation. This benefits society as a whole in a sustainable way. After all, every step toward cleaner mobility is essential for the future.

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