Corporate tax burden and finance constrains are the two important factors which impact the pro- duction and investment of coal corporate. Utilizing a dynamic optimization model, this paper constructs a frame which takes corporate tax burden and finance constrains into consideration to analyze the investment choice of coal corporate from two aspects. For one thing, the behavior characteristics and optimality condi- tions of coal corporate are depicted theoretically. For another, an econometric model is built on the base of the theoretical frame, thus the effect of corporate tax burden and finance constrains on the fixed asset in- vestment of coal corporate is investigated empirically. These results show that: ① Tax burden exerts both direct and indirect influence on the fixed assets investment of coal corporate. It directly raises the invest- ment inclination and behavior due to the tax credit function of fixed assets investment. However, the sus- tainability of corporate financing is restrained, and the difficulty of financing also grows, beingpart of its more obvious indirect effect. ② In most cases, the corporate finance constrains are reflected by the sensi- tivity of cash flow to investment. Coal corporate with sufficient cash flow will concentrate more on explo- ring new mines, updating facilities, increasing safety input, etc, which is consistent with free cash flow hypothesis. ③ Corporate scale and debt ratio which may mirror the firm's feature will not change how tax burden and finance constrains affect the investment of coal corporate. Thus, the final conclusion is stable.