Financial and taxation of new energy battery industry

Do fiscal and taxation policies influence the technological innovation of new energy vehicles?

Based on the data of the 14 listed new energy vehicle companies over 8 years, we set up the index of the technological innovation, government subsidies, and tax burden and explored the influence of fiscal and taxation policies on the technological innov-ation of the new energy vehicle enterprises and, from this, we drew our conclusions.

Why is the new energy vehicle industry a risky investment?

Also, due to the high level of investment in the new energy vehicle industry and the long R&D cycle, the industry has the characteristics of high risk and uncertain returns, and the government needs to guide enterprises through fiscal and taxation means.

What is the government's focus on the power battery industry?

Overall, as this is an emerging industry, the government’s focus varied in different periods, with the initial focus being on R&D and the production of the power battery industry to promote its development.

Are VAT incentives affecting the new energy industry chain?

First, the VAT incentives have led to the distortion of new energy industry chain, which is divided into R&D, equipment manufacturing and terminal utilization. In the previous regression analysis, we use the dummy variable direct to distinguish the differences in corporate responses to VAT incentives at different positions of the industrial chain.

Do tax incentives affect the profitability of new energy companies?

Nevertheless, relatively few studies focus on the impact of tax incentives on the profitability of new energy companies. Tax incentives offer an important and powerful mechanism to affect the development of an emerging industry.

How do tax incentives affect innovation in the new energy vehicle industry?

In general, tax incentives can have a positive effect on technological innovation in the new energy vehicle industry in terms of reducing the marginal cost of innovation, because they alleviate the corporate financing constraints and enhance the innovation risk compensation.