São Paulo Line 2-Green extension gets federal tax incentive approval

The Ministry of Cities has approved the inclusion of the Line 2-Green extension of the São Paulo Metro in the Special Regime of Incentives for Infrastructure Development (REIDI), according to Diário do Transporte. The decision was published in the Diário Oficial da União on 3 November 2026. The regime is a federal mechanism that allows certain taxes on purchases and contracts for approved projects to be suspended.

What the extension includes

The project covers the line's extension between Vila Prudente and Penha, in the east zone of the city. According to the source, the plan includes eight new stations, 22 trains and about eight kilometres of operational length, with 8.4 kilometres of total construction. The Metro is listed as the project holder, under Ministerial Ordinance MCID No. 1,482 of 29 October 2026.

Expected impact on passengers

Diário do Transporte states that the extension is expected to add about 320,000 passengers per day to the system. The source stresses that this figure is a projection presented for the project, not a demand already observed. The new stations would bring rail service to areas of the east zone that currently rely on buses and other connections.

At Penha, the line would offer new connections with the metropolitan rail network, including Line 11-Coral, which is used by passengers from the capital and from the Alto Tietê region. According to the source, this could give riders new options for trips that now require longer routes or combinations of bus, metro and train. It could also help spread demand more evenly across the network's lines.

What the approval does and does not change

According to the article, the regime can allow the suspension of PIS/Pasep and Cofins taxes on eligible purchases and contracts, which would lower the tax cost of the project. However, the source notes that the actual use of the benefit depends on legal conditions and tax registration procedures.

The federal publication does not transfer new funds from the federal government to the Metro, and it does not automatically change the total budget of the works. Physical progress, station openings and the start of train service remain governed by the schedules and procedures of the Metro and the State Government of São Paulo, as stated by Diário do Transporte.