A report by Ernst and Young, Working Together: Linking Sustainability and tax to reduce the Cost of Implementing Sustainability Initiatives, was released in early 2012 just in time for tax season. If you missed this report, you might want to download it to be prepared for 2012 tax time. There are some good tax incentives, both federal and state, for businesses that are supporting green and sustainable initiatives. Ernst and Young reported that companies were missing some good environmental tax incentives because of disconnects between sustainability professionals and the finance and tax experts. It pays to understand what companies are entitled to make sure initiatives are in alignment.

The IRS also has a page on green tax incentives for residential homeowners. It includes residential energy property credit for energy efficiency improvements, plug-in electric vehicle car purchases or conversions and purchasing of a hybrid vehicle.