Abstract: In the context of the new era of national advocacy of green development, green technology innovation, as an important means to achieve green transformation of enterprises, will be affected by the government's fiscal and tax incentive policies. Based on this, the data of Shanghai and Shenzhen A-share listed companies from 2011 to 2021 were selected as samples to build a multiple regression model to empirically-study the impact mechanism of fiscal and tax incentive policies on enterprises' green technology innovation. It is found that government subsidies can significantly enhance the green technology innovation ability of enterprises; The greater the tax incentives given by the government to enterprises, the better their green technology innovation ability, and at the same time, it helps to enhance the promotion role of government subsidies to enterprises' green technology innovation ability. This study enriched the mechanism analysis between government fiscal and tax incentives and enterprises' green technology innovation ability, and provided a useful exploration for further promoting enterprises' green technology innovation ability and accelerating China's economic green transformation.