Research On The Influence Of Corporate Income Tax On Technological Innovation Of Environmental Protection Enterprises

In recent years,the country has taken more active policy measures to improve the past crude economic development management model brought about by the irreversible environmental problems,the quality of economic development to an important position in China’s economic development,accelerate the construction of a green society,in order to achieve the country’s sustainable development goals.The macro environment and the real demand together to promote the positive development of domestic environmental protection industry,booming development trend is obvious.As a strategic emerging industry in China,one of the keys to the development of the environmental protection industry lies in technological innovation,and tax incentives have always been an important means of national incentives for enterprise technological innovation.After the 18th Party Congress,the environmental protection industry has ushered in its own development opportunities.In order to promote the vigorous development of the environmental protection industry,China has introduced a series of policies,including income tax exemptions,tax rate reductions,and income deductions.The purpose of this thesis is to explore whether these policies can effectively promote technological innovation in the environmental protection industry.The specific research ideas of this thesis: first,introduce the concept of environmental protection enterprises and technological innovation,and analyze the necessity of tax incentives for technological innovation based on market failure theory,endogenous economic growth theory and technological innovation theory;second,introduce the mechanism of corporate income tax incentives to promote enterprise technological innovation.Specifically,corporate income tax incentives can reduce the cost of using R&D and innovation funds,reduce the risk of R&D and innovation,and thus promote technological innovation of enterprises.Next,the current development status of China’s environmental protection industry is introduced,and the existing corporate income tax incentives that promote innovation in environmental protection enterprises are described.Then,based on the literature review,the theoretical framework and mechanism of action,and the current development status of environmental protection enterprises,three main hypotheses are proposed,and the data of 122 listed environmental protection enterprises from 2013 to 2020 are processed using Stata17 software.After the regression analysis using fixed effects,it is concluded based on the regression results that the corporate income tax incentives have a significant incentive effect on the technological innovation of environmental protection enterprises,and the incentive effect of corporate income tax incentives is more significant for non-state-owned environmental protection enterprises and small and medium-sized environmental protection enterprises compared to state-owned enterprises and large enterprises.In summary,based on the empirical results of the impact of existing corporate income tax preferential policies on technological innovation of Chinese environmental protection enterprises,the following suggestions are made: to further increase the intensity of corporate income tax preferential policies by adopting policies such as expanding the scope of deductible R&D expenditures,expanding the scope of deduction for investment in special equipment and correspondingly increasing the deduction rate,and to adopt more targeted tax preferential policies for different types and sizes of enterprises.The possible innovation of this thesis is to take environmental protection enterprises as a specific research object and empirically study the impact of corporate income tax preferences on technological innovation of environmental protection enterprises,and also conduct regression analysis based on the differences in the nature of enterprise ownership and differences in enterprise scale subsamples.It helps the government to understand the technological innovation of environmental protection enterprises and the shortcomings of the incentive effect of the current corporate income tax preferences,and provides a reference direction for improving the tax preferential policies of environmental protection enterprises.