EFFECT OF TAX INCENTIVES FOR SUSTAINABLE PRACTICES ON CORPORATE BEHAVIOUR

This study investigates the effect of tax incentives for sustainable practices on corporate behaviour among Nigerian manufacturing firms. It examines how three fiscal mechanisms—tax breaks for adopting green technologies, tax exemptions and financial incentives for environmentally sustainable investments, and government-supported research and development (R&D) tied to environmental targets—influence corporate sustainability practices, environmental compliance, and innovation behaviour. Anchored on Corporate Social Responsibility (CSR) theory, the study adopts a quantitative ex post facto research design with data collected from 200 corporate representatives using a structured questionnaire. Descriptive statistics revealed moderate agreement on the presence and influence of tax incentives, with mean scores around 3.0 on a 5-point Likert scale. Inferential analysis via multiple regression showed that while the overall models significantly predicted corporate behaviour (p < .05), individual tax incentive variables (TBG, TEF, and GSR) did not exert statistically significant effects independently (p > .05), suggesting multicollinearity or overlapping variance. These findings imply that tax incentives are more effective when implemented as an integrated policy package rather than as isolated instruments. The study fills theoretical, methodological, and contextual gaps by offering disaggregated insights into distinct tax incentives within an underrepresented African context. It concludes by recommending a unified fiscal strategy, improved awareness campaigns, and sector-specific policy customization. This research contributes to policy and academic discourse on sustainable development by empirically validating the role of comprehensive tax incentive frameworks in fostering corporate environmental responsibility in emerging economies