How to Fund LL97 Compliance Without Breaking Your Budget

1. Leverage NYC & State Incentive Program

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.

2. 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.

3. 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.

4. 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.

5. 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 & HZLAE 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.