Monday, April 29, 2013
The United States ranked first among 21 countries most actively using the tax code to influence sustainable corporate activity, according to the inaugural edition of the KPMG Green Tax Index, reflecting the country's extensive and long-established program of federal tax incentives for energy generally, including specific incentives for energy efficiency, renewable energy and green buildings.
Japan, the United Kingdom, France, South Korea and China were also among the leading countries using tax as a tool to drive sustainable corporate behavior, according to the index. Key policy areas explored in the index include energy efficiency, water efficiency, carbon emissions, green innovations and green buildings.
"The KPMG Green Tax Index provides important directional insight for corporate sustainability decision makers, CFOs and board members into how countries are using taxes to influence corporate behavior," said John Gimigliano, principal-in-charge of sustainability tax in the Washington National Tax practice of KPMG LLP. "Japan, for example, tops the rankings in its promotion of tax incentives for green vehicle production, while the United States favors a comprehensive system of renewable energy tax incentives. As a result, we're seeing more green cars coming out of Japan and dramatic growth in the U.S. renewable sector."