DRIVING CORPORATE ENVIRONMENTAL RESPONSIBILITY WITH TAX INCENTIVES AND CARBON TAXATION

In response to the worsening global climate crisis, this Note examines the potential role of tax policy in encouraging corporate environmental responsibility. Focusing on tax incentives and a proposed federal carbon tax, it explores how strategic tax measures could drive corporations to mitigate their environmental impact. Through an analysis of economic and regulatory measures, such as cap-and-trade and excise taxes, alongside recent legislation like the Inflation Reduction Act, this Note assesses the potential of tax credits and carbon taxes to reduce corporate emissions. It further discusses the emergence of benefit corporations, specifically B Corp certified companies, such as Patagonia and Green Hammer, as leaders in sustainability and explores how targeted tax incentives for these entities could encourage widespread adoption of sustainable practices. This Note ultimately argues that combining tax incentives for eco-conscious corporations with a federal carbon tax could create a comprehensive framework for motivating corporate action on climate change, aligning corporate financial success with environmental stewardship.