Research On Preferential Tax Policies To Promote The Development Of China’s Photovoltaic Industry

Global climate change has become the biggest consensus of human society.One of the most important factors affecting climate change is the use of traditional fossil fuels,and the energy transition has long been on the agenda in many countries.China will strive to increase the proportion of renewable energy in primary energy consumption and promote large-scale and market-oriented development of renewable energy to build a clean and low-carbon energy system.Photovoltaic power generation technology has accelerated iteration and cost has continued to decline,which strongly supports China’s photovoltaic power generation to enter the development stage of parity without subsidies.Both government subsidies and tax incentives belong to government subsidies.In the case of government subsidies retreating,how should tax incentives be adjusted? What are the differences between the tax burdens borne by all links of the photovoltaic industry chain and the preferential policies of different taxes? What are the laws of the impact of tax incentives on innovation activities of the photovoltaic industry,and whether the tax incentives play an effective role?This paper calculates the actual tax burden and preferential tax scale of listed photovoltaic companies,and analyzes the impact of preferential tax policies on the innovation activities of photovoltaic enterprises.Specifically,this paper studies the influence of tax incentive policies on the development of photovoltaic industry through theoretical deduction and empirical test.In terms of theoretical deduction,this paper selects market failure theory,immature industry protection theory and national innovation system theory as the theoretical basis of this paper.In the aspect of statistical analysis,the overall tax burden rate of different links of the photovoltaic industry chain and the tax burden rate of different taxes are calculated.In terms of empirical test,36 listed companies in China’s photovoltaic industry in the past nine years from 2012 to 2020 were selected as research samples to analyze the impact of tax incentives on photovoltaic enterprises’ innovation activities,set variables and models,and explain and analyze the empirical results.The influence is not a single "promoting effect" or "crowding out",but both are the "hybrid effect",namely the modest tax incentives for the innovation of the photovoltaic industry listed company research and development activities for "promoting effect",Excessive tax incentives are often "crowding out effect".Based on the above theories and empirical analysis,it is found that the current preferential tax policies for photovoltaic industry have the following three prominent problems: First,the VAT preferential policy is not updated in a timely manner.Second,the tax credit policy is not fully used.Third,the intensity of tax incentives needs to be strengthened,there is room for improvement in the effect of policy incentives,and land-related tax incentives are not clear.In this paper,in the final chapter,I put forward the following four Suggestions: first,the reasonable control of preferential tax,avoid excessive preferential financial loss.Second,we will set aside tax credits and tax rebates,clarify policies on preferential tax treatment for land,and appropriately expand the coverage of preferential tax treatment.Third,improve the timeliness of the preferential tax policies for the photovoltaic industry,avoid the policy window period,implement tax credits for schools,hospitals and other departments to invest in photovoltaic projects,and increase tax support for the reorganization of photovoltaic enterprises.Fourth,establish a preferential tax evaluation mechanism.