Local Law 97 (LL97) mandates that NYC buildings over 25,000 square feet significantly reduce their carbon emissions, with the first major compliance deadline fast approaching in May 2025. While some building owners may be concerned about the costs of compliance, failing to act could result in hefty fines and missed opportunities for financial incentives. The good news? There are several ways to fund LL97 compliance without breaking your budget. Need help funding your LL97 compliance plan? Contact Milrose Consultants & HLZAE today for a customized funding strategy that fits your budget and long-term goals. Here’s how:
- Leverage NYC & State Incentive Programs
Several programs are designed to help offset the costs of energy efficiency improvements and decarbonization efforts:
- NYSERDA Programs – The New York State Energy Research and Development Authority (NYSERDA) offers grants, rebates, and low-interest financing for building upgrades like high-efficiency HVAC systems and insulation improvements.
- Con Edison Incentives – NYC’s largest utility provider offers cash rebates for energy-efficient lighting, heating, and cooling upgrades.
- NYC Accelerator – This free city-run program provides technical assistance and guidance on available financial incentives for LL97 compliance.
Tip: Start early! Some incentive programs have limited funding, so apply as soon as possible.
- Take Advantage of Federal Tax Credits & Deductions
Federal programs can help property owners reduce upfront compliance costs:
- Investment Tax Credit (ITC) – Provides tax credits for installing renewable energy systems like solar panels and battery storage.
- 179D Energy-Efficient Commercial Building Deduction – Allows building owners to deduct the cost of energy-efficient upgrades.
- Inflation Reduction Act (IRA) Grants – Offers funding opportunities for energy-efficient projects in commercial buildings.
Tip: Work with a tax professional to maximize your deductions and credits.
- Explore Low-Interest Financing & Green Loans
If upfront costs are a concern, financing options can make compliance more affordable:
- Property Assessed Clean Energy (PACE) Financing – Provides long-term, low-interest financing for energy efficiency and renewable energy projects, repaid through property taxes.
- Green Bank Loans – NY Green Bank offers capital for building owners looking to fund sustainability projects.
- Utility On-Bill Financing – Some utilities allow building owners to pay for upgrades over time through their monthly utility bills.
Tip: Financing your upgrades now can lock in lower costs before materials and labor expenses rise.
- Implement Cost-Effective, High-Impact Upgrades
Not all LL97 upgrades require massive investments. Start with low-cost, high-impact improvements, such as:
- LED lighting retrofits – One of the easiest ways to reduce energy consumption.
- Building automation systems (BAS) – Smart thermostats and controls can optimize HVAC performance and cut costs.
- Weatherization & insulation – Reduces heating and cooling expenses with minimal upfront investment.
Tip: Conduct an energy audit to identify the most cost-effective compliance measures for your building.
- Partner with an LL97 Compliance Consultant
Navigating compliance alone can be overwhelming and costly. Partnering with a Local Law 97 expert can help you:
- Identify the best funding options for your specific building.
- Develop a phased compliance strategy to spread costs over time.
- Avoid unnecessary expenses and maximize available incentives.
Tip: Consulting with experts like Milrose Consultants & HLZAE can help streamline your compliance process and reduce financial strain.
Final Thoughts
Funding LL97 compliance doesn’t have to be a financial burden. By leveraging incentives, tax credits, financing options, and strategic planning, building owners can meet their compliance goals while maintaining financial stability.
Milrose & HLZAE can help you evaluate which solution is best for you and help you apply for the appropriate funding programs.
View our recent webinar on Local Law 97 here.
