As 2025 approaches, New York City building owners face opportunities to embrace sustainability while meeting stricter environmental regulations. Local Law 97 (LL97) sets ambitious emissions goals, but building owners can reduce costs and improve property value by leveraging available incentives and rebates.
Key Incentives for 2025
1. Inflation Reduction Act (IRA) Rebates
The IRA delivers transformative funding opportunities for sustainable building upgrades:
- Home Efficiency Rebates: These rebates fund whole-building retrofits that improve energy performance by at least 35%. Building owners can receive up to $4,000 per project, with higher amounts available for low-income properties.
- Energy Efficiency Tax Deductions (Section 179D): Commercial properties qualify for significant deductions when installing energy-efficient lighting, HVAC systems, or insulation. Deductions range from $2.50 to $5 per square foot, depending on the energy savings achieved.
- The Cozy, a smart radiator cover, qualifies for a 30% energy storage ITC.
2. Updated J-51 Tax Benefits
The J-51 tax abatement program has been expanded to support LL97-related improvements. This program offers property tax relief to eligible multifamily buildings undertaking energy-efficient upgrades. Owners of older buildings can qualify for abatements by completing projects like:
- Replacing inefficient windows and doors with energy-efficient alternatives.
- Installing modern HVAC systems to reduce energy consumption.
- Upgrading building envelopes with better insulation and weatherproofing.
This incentive is especially beneficial for landlords in rent-regulated or affordable housing properties, as it helps reduce the cost burden of necessary retrofits.
3. State-Level Energy Efficiency Rebates
In addition to federal incentives, New York State offers utility programs through NYSERDA. (With the Cozy, building owners receive $2 – $4/ therm saved):
- Multifamily Performance Program: Provides funding for retrofits that achieve measurable energy savings in residential buildings with five or more units. Participants can access rebates for energy modeling, energy-efficient equipment, and construction costs.
- EmPower New York: Targets low-income households and multifamily properties by offering no-cost or low-cost upgrades, such as efficient lighting, weatherproofing, and high-efficiency heating systems.
- NY-Sun Program: Supports solar panel installations with incentives based on system size and location, helping buildings lower electricity bills while adopting renewable energy.
4. Carbon Credits to Offset Emissions
For buildings that struggle to meet LL97’s emissions thresholds, NYC is rolling out a carbon credit program as an alternative compliance mechanism. Building owners can:
- Purchase locally generated carbon offsets to reduce penalties for emissions overages.
- To achieve compliance, invest in renewable energy projects, such as community solar or wind farms.
- Partner with organizations developing emissions-reduction projects, ensuring environmental and community benefits align with the city’s climate goals.
Benefits of These Programs
By utilizing these programs, building owners can achieve multiple benefits:
- Lower Costs: Incentives reduce upfront expenses for large-scale retrofits.
- Energy Savings: Efficient upgrades cut energy bills and improve operational performance.
- Higher Property Value: Sustainability improvements attract residents and buyers while boosting building marketability.
- Environmental Impact: These changes directly support NYC’s carbon reduction goals, contributing to a greener future.
Takeaway
Building owners in NYC have a unique opportunity in 2025 to embrace sustainability, save money, and future-proof their properties. With available incentives and strategic planning, compliance with LL97 can become a win-win for both the environment and your bottom line.
At Kelvin, we specialize in energy efficiency to help buildings meet sustainability standards while improving resident comfort. Our Cozy radiator covers reduce emissions and cut energy costs, making compliance with Local Law 97 more achievable. Contact us for a free evaluation.
Sources:
https://www.nyc.gov/assets/buildings/html/ll97-greenhouse-gas-emissions-reductions.html
https://www.nyc.gov/assets/accelerator
https://www.nyc.gov/html/hpd/html/developers/j-51.shtml
https://www.energy.gov/articles/inflation-reduction-act-guidebook
https://www.nyserda.ny.gov/All-Programs/Multifamily-Performance-Program
https://www.nyserda.ny.gov/All-Programs/EmPower-New-York
https://www.nyc.gov/assets/buildings/html/ll97-carbon-offset-guidelines.html
Related Articles
Navigating Local Law 97: Compliance Insights for NYC Condo...
February 20, 2024Local Law 97 represents a significant step for New York City in its pursuit of environmental sustain [...]
How Exactly Does a Cozy Distribute Heat?
July 25, 2023The Cozy, technically known as a thermostatic radiator enclosure (TRE), is a proven way to save ener [...]