Yang, X.; Yuan, W., and Li, Z.M., 2020. An analysis on the dynamic impact of corporate income tax on technological innovation in China with the construction of ecological civilization for water conservation, energy conservation and emission reduction. In: Bai, X. and Zhou, H. (eds.), Advances in Water Resources, Environmental Protection, and Sustainable Development. Journal of Coastal Research, Special Issue No. 115, pp. 535-538. Coconut Creek (Florida), ISSN 0749-0208.

With the promotion of ecological civilization construction, the government has always been concerned about how to achieve technological innovation and upgrading, so as to better carry out emission reduction and environmental protection. Only through technological innovation can enterprises better realize water and energy saving and promote environmental sustainable development. As the second largest tax in China, corporate income tax affects the level of technological innovation through tax revenue and tax preference. In this paper, on the basis of theoretical analysis, the panel data of China from 1998 to 2017 were used to empirically test the impact of corporate income tax on the dynamics of technological innovation. The results show that the corporate income tax has significantly promoted the technological innovation in U shape to some extent, which was further proved by a threshold regression, that is, the short-term income backwardness mechanism and the implementation of tax preferential policies have significantly improved the level of technological innovation. However, with the increase of the burden of technological innovation of enterprises and the defects of tax preferential policies, the promotion level has been reduced. The long-term corporate income tax has reached a certain scale, which ensures the financial revenue and the government's efforts to optimize the allocation of tax resources, reasonably standardizes and plays the role of preferential policies, and increases its promotion role.