New York
Financial Incentives
Tax Benefits: The Green Building Tax Credit is available to corporate and residential taxpayers
who construct a green building or rehabilitate a building to be a green building. Projects can
qualify for credits under six different program components:
1. Whole Building Credit (owner or tenant), where base building and all tenant space are
green;
2. Base Building Credit (owner), for non-dwelling spaces;
3. Tenant Space Credit (owner or tenant), where the base building must be green to qualify
if the tenant space is under 10,000 square feet;
4. Fuel Cell Credit, for systems fueled by a “qualifying alternate energy source”;
5. Photovoltaic Module Credit; and
6. Green Refrigerant Credit, for new air conditioning equipment using an EPA-approved
non-ozone depleting refrigerant.1
In addition, the Refundable Clean Heating Fuel Tax Credit is available for biodiesel purchased
for residential space and water heating. The tax credit is equal to $0.01 per gallon for each
percent of biodiesel blended with conventional home heating oil, up to a maximum of $0.20 per
gallon.2 The Solar and Fuel Cell Tax Credit provides a personal income tax credit of 25 percent
of the cost of the purchase and installation of solar PV and solar thermal equipment, and 20
percent of the cost of the purchase and installation of fuel cells. The credit is capped at $5,000
for solar equipment and $1,500 for fuel cells.3 The Energy Conservation Improvements Property
Tax Exemption exempts certain residential energy conservation improvements from real
property taxation to the extent that the improvement increases the value of the home. This
exemption does not apply to special assessments, however.4 Finally, the purchase and
installation of qualifying residential solar-energy systems is exempt from the state’s sales and
compensating use taxes.5
Loan Programs: New York’s System Benefits Charge (SBC) annually generates approximately
$175 million for renewable energy and energy efficiency projects,6 including the New York
Residential Loan Fund, which provides reduced-interest rate loans through participating lenders
to finance renovation or construction projects that improve a home’s energy efficiency,7 and the
Green Jobs – Green New York Loan Program, which provides loans for the installation of energy
efficient measures in homes.8 The SBC is authorized until June 2011.9 SBC programs are
administered by the New York State Energy Research and Development Authority (NYSERDA).
Grants: The SBC also funds grant programs such as:

the Clean Energy Business Growth and Development program, which provides clean
energy business projects with grants of up to 50 percent of a project’s cost, with a
maximum of $200,000 per project;10

direct cash incentives of $750 to $1,500 for certified builders who build an Energy Star
home;11

grants to manufacturers to develop or expand facilities that produce renewable, clean, and
energy efficient products;12

the Assisted Home Performance Program, which provides grants to low-income
homeowners for up to 50 percent of the costs of energy efficient improvements;13 and

EmPower New York, which provides grants for electricity reduction measures in
homes.14
Rebates: NYSERDA offers rebates through the SBC for the implementation of pre-qualified
performance-based energy efficiency measures;15 the operation of demand-side, energy
efficiency, and CHP systems;16 the construction or substantial renovation of residential buildings
that meet certain green building requirements;17 energy efficiency measures in multifamily
homes;18 PV systems;19 and wind systems.20 New York also offers rebates for the purchase and
installation of certain energy efficient refrigerators, freezers, clothes washers, and dishwashers
that replace existing appliances in single- and multifamily residential dwellings.21
Rules and Regulations
Renewable Portfolio Standard: IOUs must generate 30 percent of the state’s electricity from
renewable energy sources by 2015. Of this 30 percent, about 20.7 percent will be generated
from existing facilities and 1 percent will be generated through voluntary green power sales. The
remainder will be divided into two types: Main Tier, which accounts for about 93 percent of the
remaining requirement, and Customer-Sited Tier (CST), which accounts for about 7 percent.
Eligible Main Tier resources include solar PV, ocean, tidal, wind, hydro, methane digesters,
biomass (including clean wood sourced from mixed demolition debris), liquid biofuels, and fuel
cells. Eligible CST resources include solar PV, solar hot water, wind, methane digesters, and
fuel cells.22
Facility Siting and Permitting: Although the New York State Department of Environmental
Conservation (DEC) does not have general approval authority over siting of wind energy
projects, it is often involved in the environmental review process, and has permit approval
authority over construction of wind projects where specific resources subject to DEC jurisdiction
are impacted.23 In connection with this authority, DEC has issued guidelines for conducting bird
and bat studies at commercial wind projects.24 In addition, NYSERDA has created a wind
energy toolkit to provide information on various aspects of wind energy development.25 New
York’s real property laws allow for the creation of solar easements to ensure uninterrupted solar
access for solar energy devices.26
Building Codes, Appliance, and Equipment Standards: New York’s residential and
commercial building codes are based on the 2009 IECC. New York also requires compliance
with ASHRAE 90.1-2007 for commercial buildings.27 New York has set minimum energy
efficiency standards for certain consumer appliances, including refrigerators, consumer audio
and video products, power supplies, heaters, and ceiling fans (however, some have been
superseded by subsequent federal standards).28
Electricity Transmission, Interconnection and Storage: The New York Public Service
Commission’s Standard Interconnection Requirements apply to all DG systems up to 2MW.
Simplified rules exist for systems up to 25 kW.29 IOUs must offer net metering on a first-come,
first-served basis to customers generating electricity from wind, solar, agricultural biogas, CHP
and fuel cells.30 The aggregate limit on net-metered wind systems is 0.3 percent of a utility’s
electric demand in 2005,31 and the aggregate limit on solar, agricultural biogas, CHP and fuel
cell systems combined is 1.0 percent of a utility’s electric demand in 2005.32 System size
limitations are as follows: 25 kW for residential solar and 2 MW for nonresidential solar;33 25
kW for residential wind, 500 kW for agricultural wind, and 2 MW for nonresidential wind;34 1
MW for agricultural biogas;35 10 kW for CHP and fuel cells.36 NEG is credited to the customer’s
account at the utility’s retail rate, except for CHP and fuel cell systems, where it is credited to the
customer’s account at the utility’s cost avoided rate.37
Government Procurement: Executive Order No. 111 (2001) requires all state agencies and
departments to reduce energy consumption by 35 percent, relative to 1990 levels, in all buildings
that they own, lease, or operate, by 2010. It also directs state agencies to procure 20 percent of
their electricity from solar PV, solar thermal, wind, biomass, geothermal, methane waste and fuel
cells by 2010.38 The New York State Green Building Construction Act requires state agencies to
follow green building guidelines when constructing or substantially renovating state buildings,
and to select Energy Star labeled products when acquiring or replacing energy-using
equipment.39 All new light-duty vehicles procured by state agencies must be AFVs or HEVs,
with exceptions for designated police and emergency vehicles.40
Policies, Plans, and Governmental Affiliations
Policies and Plans: On August 6, 2009, Governor David Paterson issued Executive Order No.
24, setting a goal of reducing the state’s GHG emissions 80 percent from 1990 levels by 2050
and creating the New York State Climate Action Council (CAC).41 In November 2010, the CAC
released its Climate Action Plan Interim Report, which calls for an interim GHG emissions
reduction target of 40 percent below 1990 levels by 2030 and sets forth an initial plan for
meeting these goals.42
Government Entities: New York State Climate Action Council,43 New York State Energy
Research and Development Authority (NYSERDA),44 New York State Public Service
Commission,45 New York State Department of Environmental Conservation,46 New York State
Department of Taxation and Finance.47
Regional Memberships: New York is a member of RGGI and ICAP.
1
NY Tax Law § 19; 6 NYCRR Part 638; http://www.dec.ny.gov/energy/218.html.
NY Tax Law § 210.39.
3
NY Tax Law § 606(g-1) et seq.
4
NY Real Property Tax Law §487-a; http://www.orps.state.ny.us/assessor/manuals/vol4/part1/section4.01/sec487a.htm.
2
5
NY Tax Law § 1115(ee).
NY PSC Opinion No. 96-12 (Cases 94-E-0952 et al.);
http://www3.dps.state.ny.us/W/PSCWeb.nsf/All/58290EDB9AE5A89085257687006F38D1?OpenDocument.
7
http://www.nyserda.org/resloanfund.asp.
8
http://www.getenergysmart.org/SingleFamilyHomes/ExistingBuilding/HomeOwner/Financing.aspx#.
9
NY PSC Order (Case 05-M-0090).
10
http://www.nyserda.org/funding/1260pon.asp.
11
http://www.getenergysmart.org/SingleFamilyHomes/NewConstruction/Builder/SupportIncentives.aspx.
12
http://www.nyserda.org/newbusiness.asp.
13
http://www.getenergysmart.org/SingleFamilyHomes/ExistingBuilding/HomeOwner/LowIncomeEligible.aspx.
14
http://www.getenergysmart.org/LowIncome/EmPower.aspx.
15
http://www.nyserda.org/Programs/Existing_Facilities/default.html.
16
http://www.nyserda.org/programs/Existing_Facilities/industrial.html
17
21 NYCRR Part 508; http://www.getenergysmart.com/GreenBuilding.aspx.
18
http://www.getenergysmart.org/MultiFamilyHomes/Default.aspx.
19
http://www.nyserda.org/funding/2112pon.asp.
20
http://www.powernaturally.com/Programs/Wind/incentives.asp?i=8.
21
http://www.nyapplianceswapout.com/.
22
NY PSC Order, Case 03-E-0188 (Sept. 24, 2004); NY PSC Order, Case 03-E-0188 (Apr. 14, 2005); NY PSC
Order, Case 03-E-0188 (Jan. 08, 2010); NY PSC Order, Case 03-E-0188 (Apr. 02, 2010); Press Release;
http://www.dps.state.ny.us/03e0188.htm.
23
http://www.dec.ny.gov/energy/66494.html.
24
http://www.dec.ny.gov/docs/wildlife_pdf/finwindguide.pdf.
25
http://www.powernaturally.org/Programs/Wind/toolkit.asp.
26
NY Real Property Law § 335-b.
27
http://www.dos.state.ny.us/code/energycode/nyenergycode.htm.
28
NY Energy Law 16-102 et seq.; 19 NYCRR § 910 et seq.;
http://www.nyserda.org/programs/State_Government/ApplianceStandard.asp.
29
http://www.dps.state.ny.us/distgen.htm.
30
NY Pub. Service Law § 66-j and § 66-l.
31
NY Pub. Service Law § 66-l(3)(a)(iii).
32
NY Pub. Service Law § 66-j(3)(a)(iii).
33
NY Pub. Service Law § 66-j(1)(d).
34
NY Pub. Service Law § 66-l(1)(f).
35
NY Pub. Service Law § 66-j(1)(e).
36
NY Pub. Service Law § 66-j(1)(f) and § 66-j(1)(g).
37
NY Pub. Service Law § 66-j(4)(b).
38
Executive Order No. 111 (2001).
39
http://www.ogs.state.ny.us/EO/GBCA/Default.asp.
40
Executive Order No. 111 (2001).
41
Executive Order No. 24 (2009).
42
http://nyclimatechange.us/InterimReport.cfm.
43
http://www.nyclimatechange.us/.
44
http://www.nyserda.org/.
45
http://www.dps.state.ny.us/.
46
http://www.dec.ny.gov/.
47
http://www.tax.ny.gov/.
6