A laser system and method includes control of the direction of polarization of a laser beam that forms laser-induced channels in a substrate along a process path. Control of the direction of polarization is useful while forming laser-induced channels in substrate materials having a crystalline component. An optical element, such as a waveplate, imparts the laser beam with a direction of polarization that is controllable with respect to an axis of the substrate when the substrate is supported by the system for processing. The direction of polarization is changeable and controllable with respect to the direction of the process path and/or a crystalline plane of the substrate via movement of the optical element or the substrate or both.