TAX INCENTIVES IN SUPPORTING GREEN INNOVATIONS

This article examines the economic role of tax incentives in supporting green innovations and assesses their practical relevance for the transition to a green economy in Uzbekistan. The analysis is grounded in the concepts of fiscal stimulation, ecological modernization, renewable energy development, and resource-efficient technological renewal. Particular attention is paid to the legal and strategic framework of Uzbekistan, including tax preferences for renewable energy producers, producers of renewable energy equipment, and households adopting clean technologies. The article argues that tax incentives can improve the investment climate for green projects by lowering capital costs, easing cash-flow constraints, and shortening the payback period of environmentally oriented investments. At the same time, their impact depends on policy targeting, transparency, monitoring, and consistency with broader industrial, innovation, and environmental policy. Uzbekistan’s recent experience is discussed in conjunction with selected foreign approaches, especially technology-neutral tax credits and accelerated depreciation mechanisms. The study concludes that tax incentives should evolve from broad and largely profit-based preferences toward more targeted, performance-sensitive, and innovation-oriented instruments that better stimulate green investment, technological upgrading, and sustainable development.