Since the 18th National Congress of the Communist Party of China, China has always placed technological innovation at the core of its development. In today's world, under the background of advocating "green manufacturing," energy conservation and emission reduction are the inevitable path to sustainable green development. This article primarily utilizes the method of data analysis to analyze the issues existing in fiscal and tax preferential policies in promoting technological innovation from the perspectives of literature review and tax preferential policy combing. These issues include the current fiscal and tax preferential policies leading enterprises to pursue the quantity rather than the quality of innovation, high policy thresholds, difficulties in expense allocation, limitations in tax incentives from multiple perspectives, and insufficient support for innovative talents in fiscal and tax policies. Based on these issues, a series of operable suggestions are proposed. It is hoped that this study can contribute to the revision and improvement of fiscal and tax preferential policies for technological innovation in energy conservation and emission reduction, providing effective theoretical references and inspirations.