Abstract: The technological achievements investment has been main way of transformation, innovation and entrepreneurship. Tax issue of technological achievements investment becomes the hot topic. This paper mainly compares and analyses the squeeze-out effect of immediate tax，deferred tax for five years and temporary tax-free(defer to the exit) on the technological achievement investment, finding the phenomenon is “immediate tax >deferred tax for five years >temporary tax-free”, which indicates the temporary tax-free policy is most effective. Therefore, this study proposes we should take tax policy that is tax-free when getting equity and taxable when getting cash earnings from equity transfer, insisting on the principle there is no taxes when no gains, and pay taxes when gains. Temporary tax-free policy for technological achievements investment can promote the technological achievements investment, innovation and entrepreneurship, and give impetus to industrial transformation and upgrading.