This chapter is an attempt to summarize and possibly simplify the complex and highly political world of government incentives that are prima facially intended to encourage and partially compensate individuals and business entities for taking on the financial risk and inconvenience of investments of purchase decisions in the interest of the greater good. For subsidies and incentives to be economically sustainable, they must be temporary, limited to the time it takes for a new technology or regulatory framework to evolve to the point that it is self-perpetuating in the free market. However, this outcome is often not the case in transportation, with some entire industries perpetually existing only by taxpayer benevolence. Among the incentive programs available to commercial entities in the USA are Carbon Offset Credits, Regulatory Credits, and Renewable Energy Certificates. Government-backed loans, grants, and minimally vetted “earth-shot” public goals also fall into this category. Incentives to consumers include a wide array of targeted tax credits and direct purchase subsidies intended to encourage adoption of technology options that would otherwise be more expensive or less convenient than existing alternatives. This chapter briefly discusses the potential benefits and liabilities that result from the artificial economy created by government incentives in sustainable transportation. The references cited can provide much greater depth for this complex and controversial topic.