As the world turns more and more into a big village, it becomes increasingly easy to see how the lives of people (plants, animals, ecosystems) everywhere are closely synced up with one another. Everything we do each day may have an impact on the planet, either good or bad.

With day-to-day life and old habits to overcome, some encouragement to going green is always welcome.

Many of you are familiar with the eco minded credits that have been on offer so far and even got to enjoy some of them. So what federal incentives for going green are there available for 2012, 2013 and beyond?

Residential Energy Efficiency Tax Credit

Although initially this tax credit expired at the end of 2011, the American Taxpayer Relief Act of 2012 retroactively renewed it effective January 1, 2012, expiring again on December 31, 2013. 

The credit applies to energy efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum tax credit for all improvements made in 2011, 2012, and 2013 is $500. The cap includes tax credits for any improvements made in any previous year.

Residential Energy Efficient Property Credit

This tax credit is intended to help taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, solar electricity equipment and wind turbines.

The credit, which runs through 2016, is 30% of the cost of qualified property. There is no cap on the amount of credit available, except for fuel cell property. Generally, you may include labor costs when figuring the credit and you can carry forward any unused portions of this credit. Qualifying equipment must have been installed on or in connection with your home located in the United States; fuel cell property qualifies only when installed on or in connection with your main home located in the United States.

Not all energy-efficient improvements qualify so be sure you have the manufacturer’s tax credit certification statement, which can usually be found on the manufacturer’s website or with the product packaging.

The Alternative Fuels Credit

The Alternative Fuels Credit, which previously expired December 31, 2011, has been extended through December 31, 2013.

This Credit applies to alternative fuels used by a taxpayer in, or sold by a taxpayer for use in, aviation, a motor vehicle, or a motorboat. The amount of the credit permitted is $0.50 per gallon of liquid alternative fuel and, in the case of non-liquid alternative fuel, $0.50 per gasoline gallon equivalent.

The Hybrid and Alternative Motor Vehicle Credit

If you buy a hybrid or other energy-efficient vehicle (such as one that runs on natural gas, liquefied petroleum gas, or hydrogen) you may be eligible for the alternative vehicle credit.

The amount of the credit depends on the specific model and is based on the vehicle’s fuel efficiency. You can find a complete list of qualifying vehicles on the IRS website.

Your qualifying vehicle must be used primarily in the United State and you must be its original owner (used vehicles do not qualify).

If your credit is bigger than what you owe in taxes, your taxes are reduced to zero and the rest of the credit is lost. If the vehicle is for personal use and you pay alternative minimum tax, you may be able to claim the credit against the AMT.

The credit is reduced after a manufacturer sells a certain number of hybrid or advanced energy-efficient vehicles in the United States.

The plug-in electric vehicle credit

You may be eligible for this credit if you buy a new plug-in electric vehicle such as certain two-or-three-wheeled vehicles or low speed four-wheeled vehicles.

The credit applies to vehicles acquired after February 17, 2009 and before January 1, 2013, and is 10% of the purchase price of the vehicle up to a maximum amount of $2,500.

The plug-in electric drive motor vehicle credit

To be eligible for this credit you must buy a new plug-in electric drive motor vehicle, often referred to as a plug-in hybrid electric drive (PHEV) or electric vehicle (EV), that you acquired after December 31, 2008 and placed in service in the current year.

As of January 2013, the tax code allows tax-free transportation fringe benefits of up to $245 per month per employee for transit expenses and up to $245 per month for qualified parking. Qualified parking is defined as parking at or near an employer's worksite, or at a facility from which employee commutes via transit, (vanpool or carpool). Commuters can receive both the transit and parking benefits (up to $490 per month).

Companies can offer a tax-free employer-paid subsidy, a pre-tax employee-paid payroll deduction, or a combination of both. Employees who set aside income on a pre-tax basis for a qualified transportation fringe benefit do not pay federal income or payroll taxes on the income set aside.

The $245-a-month transit commuter tax benefit will expire on Dec. 31, 2013, unless Congress extends it, and is retroactive to Jan. 1, 2012.

There are several tax breaks for businesses going green as well:

• The Energy-Efficient Commercial Buildings Tax Deduction is available for businesses that improve the performance of three building elements: lighting, building envelope, and heating, ventilation and air conditioning (HVAC) systems. The deduction is worth $1.80 per square foot of the building for retrofits that address all three of the above-mentioned areas.
  

• The Appliance Manufacturers’ Tax Credit for the production of wind, solar and other renewable energy. For one year, a manufacturer may claim no more than $25 million, and the credit value cannot exceed 4% of the company’s gross receipts.
  

Embracing a greener lifestyle isn't just about helping to preserve equatorial rain forests, it can also mean improving your health, padding your bank account, and, ultimately, improving your overall quality of life.