The Inflation Reduction Act (IRA), passed in 2022, provides federal tax credits and rebates for energy-efficient upgrades, electrification, and renewable energy adoption. For NYC property owners, the IRA presents a critical opportunity to reduce the upfront cost of compliance with LL97 and avoid steep carbon penalties.

The IRA can fund the upgrades your building needs to:

• Cut emissions
• Lower energy costs
• Modernize systems
• Improve resilience

Whether you’re electrifying your heating system or adding solar panels to your roof, the IRA can help make your project financially feasible.

A wide range of NYC property owners and decision-makers may qualify for IRA benefits, including:

• Multifamily building owners (market-rate and affordable)
• Commercial office and retail property owners
• Condominiums and co-ops
• Property managers and developers
• Nonprofits and institutions (e.g., schools, hospitals)

Eligibility depends on your project type and whether it meets the technical and labor requirements set by the IRA.

IRA incentives align closely with the upgrades required for LL97 compliance and long-term carbon reduction. Eligible projects include:

• Electrification: Heat pumps for heating, cooling, and domestic hot water
• Electrical infrastructure upgrades: Panel and service improvements to support electrification
• Energy efficiency upgrades: Insulation, windows, lighting, and controls
• Renewables: Solar PV, battery storage, and other on-site generation
• EV charging infrastructure: Supporting transportation electrification

Bonus incentives are available for projects in disadvantaged communities and for meeting higher energy performance thresholds.

Most incentives come in two forms:

• Federal tax credits—claimed on your business’s or building’s tax return.
• Rebates—some of which will be administered in New York State through NYSERDA or utility programs as they launch.

Our role is to help you:

• Identify which incentives apply to your project
• Calculate the financial impact
• Plan your project to meet eligibility requirements
• Assist with filing documentation and applications

To unlock the full value of IRA incentives, most commercial-scale projects must meet federal labor standards, including:

• Prevailing wage requirements: Pay your workforce at rates consistent with NYC’s market wages.
• Apprenticeship requirements: Include registered apprentices in your workforce.

These labor rules reflect practices already familiar to many NYC developers and contractors.

While the IRA incentives are designed to be available for several years, the largest incentives phase down over time, and NYC’s LL97 carbon penalties begin in 2025 for many buildings.

If you’re planning capital upgrades, it’s critical to:

• Lock in a qualified engineering firm and Registered Design Professional (RDP) like EN-POWER GROUP to:

1. Start design and permitting now
2. Incorporate IRA incentives into your financial modeling
3. Complete construction before key deadlines to maximize savings

We’ve helped NYC building owners unlock millions of dollars in incentives, including federal tax credits, NYSERDA rebates, and utility programs. With expertise across engineering, compliance, and incentive funding, we turn complex projects into clear financial outcomes.

• Compliance strategy aligned with your capital plan
• Full-service engineering, design, and project management
• Incentive analysis and application support

Ready to maximize your IRA savings and meet LL97 with confidence?

Contact EN-POWER GROUP for a free consultation.

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