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Brazil-bound solar energy equipment will be exempt from import duty under a proposal approved by a senate economics committee on Tuesday.
The move is designed to diversify Brazil's energy matrix, reducing dependence on hydroelectric and thermal plants, state news service Agência Brasil reported.
Introduced by senator Ataídes Oliveira, of the center-left PROS party, the bill will be forwarded for review by both houses of Congress.
The proposal comes as solar generation gains momentum in South America's largest country.
Developers last month committed to new plants totaling 889.6MW with investments of 7.1bn reais (US$2.82bn) at the country's first exclusive solar bid round.
According to local power regulator Aneel, photovoltaic plants make up less than 0.1% of the country's 130GW installed power capacity.
Earlier this month, the Peru manager of Spanish developer Solarpack, Ignacio Careaga, told the 11th Southern Cone Energy Summit in Lima that developers were deterred by Brazil's strict local content rules.