The implementation of the “Environmental Protection Tax Law” provides a quasi natural experimental environment for testing the effects of “Environmental Protection Fee to Tax”. This paper takes the listed companies in heavily polluting industries from 2015 to 2020 as a sample, and uses the difference in difference model (DID) to test the impact of “Environmental Protection Fee to Tax” on the total factors productivity of heavily polluting enterprises. The results of the study show that the “Environmental Protection Fee to Tax” has significantly increased the total factors productivity of heavily polluting enterprises, and overall supports the “Porter hypothesis”; however, the increase in total factors productivity of high polluting enterprises is not due to the innovation compensation effect, but stems from the “Environmental Protection Fee to Tax” that has increased the efficiency of resources allocation. The above results support the conclusion of the “Porter hypothesis”, and affirms that “environmental regulations optimize the allocation of corporate resources and thus increase productivity. ” Further analysis found that the “environmental protection fee to tax” improvement effect on the total factors productivity of heavily polluting enterprises exists in private enterprises, and the total factors productivity improvement effect is stronger in enterprises with high R&D investment intensity.