The federal government and some state governments offer grants, tax credits and even rebates to consumers willing to take the plunge and go green. Many of the benefits are offered to alternative fuel vehicles (like being able to drive in HOV lanes regardless of the number of occupants) but some offer significant cash incentives to make your home or business more environmentally friendly.

Although the Energy Policy Act of 2005 has expired for the most part there are still some incentives available through 2008.

1. Alternative Fuel Vehicles purchased or placed into service between 2005 and 2010 could be eligible for an income tax credit up to $4,000. This is for new vehicles only whether purchases or leased and does not include used vehicles.

2. New homes can get a credit for 30% of qualified installations (including some insulation, windows and doors) up to $2000.

3. The Energy Efficient Commercial Buildings Tax Deduction is for businesses and is based on the measurable amount of energy that is saved through the installations. It is limited to $1.80 per square foot.

4. USDA Rural Energy for America Program (REAP) offers grants to rural small businesses for purchasing renewable energy systems or making energy efficiency improvements.

Incentives through states vary with some offering little for choosing alternative fuels and sources. Although the incentives are a great bonus, going green can sometimes offer enough savings to make it worth while in the end