Small Business Opportunities

ENERGY STAR® Portfolio Manager® Benchmarking - The first step to saving your building energy is to benchmark or measure and compare your building’s energy to similar buildings, past consumption, or a reference performance level.Portfolio Manager is an interactive resource management tool that enables you to benchmark the energy use of any type of building, all in a secure online environment.

Excelsior Jobs Program - Provides job creation and investment incentives to eligible for-profit business entities for “green projects” or projects that make products or develops technologies that are primarily aimed at reducing greenhouse gas emissions or supporting the use of clean energy are incentivized and can include the manufacture or development of products or technologies or supply chain components primarily for renewable energy systems (defined in section 66p of the public service law), vehicles that use non-hydrocarbon fuels and produce zero or near zero emissions, heat pumps, energy efficiency, clean energy storage and other products that significantly reduce greenhouse gas emissions by minimizing the utilization of depletable resources or by improving industrial efficiency. “Green projects” are eligible for the Excelsior:

• Investment Tax Credit: a credit valued at 5% of qualified investments
• Research and Development Tax Credit: a credit of 50 percent of the Federal Research and Development credit up to 8% of eligible research expenditures in NY

To earn any of the following credits, firms must first meet and maintain the established job and investment thresholds. Businesses can claim the credits over a multi-year period.

Federal Solar Tax Credit for Businesses - There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase solar energy systems:

• Investment tax credit (ITC) - reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
• Production tax credit (PTC) -a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.

Solar systems that are placed in service in 2022 or later and begin construction before 2033 are eligible for a 30% ITC or a 2.75 ¢/kWh PTC if they meet labor requirements issued by the Treasury Department or are under 1 megawatt (MW) in size.

Green New York Energy Studies – Through Green Jobs-Green Network, energy studies costing between just $100-$500 are available for small commercial operations to identify and analyze opportunities to make buildings more efficient, which lowers associated energy costs. Small commercial businesses with 100 or fewer full-time equivalent employees in facilities 50,000 sq ft or less are eligible for this offering.

Inflation Reduction Act (IRA) for Businesses - Lowers the cost for businesses to invest in clean energy and energy efficiency and can be enhanced with New York State incentives and programs, helping New York businesses use less energy, save more money, and contribute to a cleaner, healthier planet.

How Much Can Businesses Save on Clean Energy?

Eligible Clean Energy Technology	Federal IRA Tax Credit 2023-2032	New York State Incentives and Tax Credits
Energy Efficient Commercial Buildings	Tax credit of up to $5 per square foot* for new construction or retrofit project For more information, see the IRS website	Programs and incentives available
New Electric Vehicles (EVs)	Plug-in hybrid EV: 15% of cost** Battery-electric or Fuel cell EV: 30% of cost** For more information, see the IRS website	Up to $2,000 rebate for purchased or leased eligible vehicle
Vehicle Charging and Fueling Stations	30% tax credit (6% base rate with an additional 24% for meeting labor standards), up to $100,000***	Up to $2,000 rebate per charging port at workplaces or multi-unit dwellings. $500 additional incentive per port if located in Disadvantaged Community.
Solar	30% tax credit (6% base rate with an additional 24% for meeting labor standards) 10% tax credit for domestic content bonus 10% tax credit for energy community bonus 10% tax credit for low-income community bonus (<5 MW projects)**** 20% tax credit bonus for low-income residential building project / low-income economic benefit project**** For more information, see the IRS website	Tax Credits: Commercial Depreciation Allowance, NYS Real Property Tax Exemption, and NYC Real Property Tax Exemption Financing available Solar incentives available

*Eligible energy efficiency projects include lighting, heating, cooling, ventilation, hot water systems, and building envelope improvements.
**IRA tax credits may not exceed $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs.
***Property must be in an eligible low-income community or non-urban census tract.
****Low-income bonus is capped at 1.8 GW/year and limited to projects <5 MW

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179D Commercial Buildings Energy-Efficiency Tax Deduction - A tax deduction shown in the table below (up to $1.88 per square foot) is available to owners of new or existing buildings who install (1) interior lighting; (2) a building envelope; or (3) heating, cooling, ventilation, or hot water systems that reduce the energy and power cost of the interior lighting, HVAC, and service hot water systems by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1.

SUMMARY OF 179D TAX DEDUCTIONS

Compliance Path		Savings Requirements	Tax Deduction**
			taxable years before 2021	taxable year beginning 2021	taxable year beginning 2022
Fully Qualifying Property		50%	$1.80/ft2	$1.82/ft2	$1.88/ft2
Partially Qualifying Property	Envelope	10%	-$0.60/ft2	-$0.61/ft2	-$0.63/ft2
	HVAC and HW	15%
	Lighting	25%
Interim Lighting Rule		25%-40% lower lighting density (50% for warehouses)	$.060/ft2	$.0.61/ft2	$0.63/ft2

National Grid Total Building Comfort Program – National Grid wants to help businesses implement the best practices in energy efficiency. Explore the benefits of their new Total Building Comfort program to help reduce the costs for heating and cooling your building envelope. This new program offers solutions to reduce energy consumption while protecting your building and its interior from common elements such as sunlight, precipitation, and wind. If your building envelope is not sealed properly it may be letting out heating and cooling. For information on how our energy saving solutions can help increase employee productivity and decrease facility maintenance all while lowering monthly overhead expenses, contact us today at 1-800-787-1706 or email us at efficiency@nationalgrid.com.

NYS Department of Labor (DOL) – Business Service Rep – Long Island - The NYS DOL has a variety of no-cost programs and services to help you recruit and train new employees, find hiring incentives and provide hands-on technical assistance. Start with our local business services representative to find new employees on Long Island.

NYSERDA Commercial and Industrial (C&I) Carbon Challenge - Provides eligible New York State commercial, industrial, and institutional applicants with incentives on a competitive basis.Applicants are required to identify a carbon savings goal and the projects they will complete to meet that target. Eligible projects include, but are not limited to, energy efficiency improvements, retrofits, clean heating and cooling, carbon capture, utilization and storage (CCUS), industrial process emission reduction, and on-site renewable energy systems. Available awards range from $500,000 to $5 millionand are traditionally award through the Consolidated Funding Application opening in May and closing at the end of July.

NYSERDA: Find A Contractor – NYSERDA has created a statewide network of partners who offer energy efficiency solutions that can help reduce your energy usage and costs from certified contractors and accredited companies. These contractors can provide solar installation services, energy storage solutions, energy efficiency consulting services and feasibility studies , new construction energy consulting, heat pump installation services, real time energy management services, and energy efficiency services to existing multifamily buildings. The State of New York does not endorse, guarantee, represent, or assume liability for any work proposed or carried out by any entity listed.

NYSERDA Flexible Technical Assistance (FlexTech) Program - Shares the cost to produce an objective, site-specific, and targeted study on how best to implement clean energy and/or energy efficiency technologies, including network or communal geo-thermal. A NYSERDA FlexTech Consultant can work with you to complete the energy study.

NYSERDA Carbon Neutral Community Education Development Program - Incentives available to support economic development projects on Long Island for projects that are designed to carbon neutral net or zero energy performance. NYSERDA Carbon Neutral Community Economic Development program supported projects:

• Category A: Carbon Neutral Facilities (design and construction)
• Category B: Carbon Neutral Communities (planning).

Awards range up to $2 million and are traditionally award through the Consolidated Funding Application opening in May and closing at the end of July.

PSEG Free Energy Assessments for Businesses - PSEG Long Island energy consultants will tour your facility with you, discuss energy saving opportunities while guiding you through the rebate application process. During the assessment, your facility will be evaluated for: Heating and cooling equipment; Lighting – older inefficient outdated lighting versus current LED technology; Compressors and Forklifts; Variable Frequency Drive (VFD’s) & Motors; Insulation; Manufacturer Processing Equipment; Refrigeration. Get a customized plan to make your business as efficient as possible. Simply fill out our online form .

PSEG Long Island’s Commercial Efficiency Program - The Commercial Efficiency Program (CEP) assists customers who are incorporating energy efficient measures within their new or renovated facilities. You can request to work with a Prime Efficiency Partner, Technical Assistance professional, or both. Prime Efficiency Partners (PEP) connects contractors, distributors, suppliers, and manufacturers of energy efficient equipment who are certified to prepare and submit rebates on behalf of business owners. Through the Technical Assistance program , which is suited to larger businesses, PSEG Long Island will help pay for detailed energy audit with an outside energy consultant. They will tour your facility with you, discuss energy saving opportunities while guiding you through the rebate application process. A certified business can offer planning and design services in commercial electrification (replacing fossil fuel sources), geothermal energy, green building, HVAC, lighting, refrigeration, and other energy saving projects. You can request an assessment here.

PSEG Long Island EV Make Ready Program - Offers incentives for the infrastructure needed to power Level 2 and DCFC across Long Island. This program is available for all commercial customers including Multi-Unit Dwellings, Retail/Offices, Parking Facilities/Lots, and more.

• Any Level 2 projects that propose the minimum number of two (2) ports, will only be eligible for the maximum incentive of $20,000 or less.
• For projects that have 3 or more ports, the maximum incentive will be $30,000 or less.

PSEG Long Island DC Fast Charge Program - Designed to encourage the installation of DCFC equipment to mitigate EV purchasing anxiety.Incentive recipients will receive an annual per plug payout, payable at the end of each 12-month anniversary. The level of the incentive depends upon the power rating of the DCFC facility and the configuration of plugs associated with the charging equipment. The level of the incentive depends upon the power rating of the DCFC facility and the configuration of plugs associated with the charging equipment.

PSEG Renewable Energy Remote Net Metering - Remote net metering allows farm and non-residential customers with wind, solar or farm waste electric generating equipment at one location to utilize their excess generation to reduce their electric bills on accounts at other locations.If solar is installed after 2018, the Value of Distribution Energy Resources allows all solar credits remain on an account for twenty years. Any account that was solar before that date, gets reconciled on a yearly basis with a buy back of .02-.05 cents per kWh.

Suffolk County Commercial PACE Program - Suffolk County’s local businesses and not-for-profits can participate in Commercial PACE program. Undertaking a clean energy project can reduce a building’s energy bill, improve its operations, reduce its carbon footprint, and increase property value. EIC NY (PACE) Finance offers low cost, long-term capital for energy-related building improvements that is secured through a benefit assessment lien on the improved property.

Truck Voucher Incentive Program - The New York Truck Voucher Incentive Program (NYTVIP), administered by the New York State Energy Research and Development Authority (NYSERDA), helps make it easier for fleets to adopt zero-emission vehicle technologies while removing the oldest, dirtiest diesel engines from New York roads. NYTVIP provides vouchers, or discounts, to fleets across New York State that purchase or lease medium- and heavy-duty zero-emission battery electric (BEV) or hydrogen fuel cell electric (FCEV) vehicles. Voucher amounts are based on a percentage of the incremental cost of the vehicle, which is the difference in cost between the zero-emission vehicle and a comparable diesel vehicle, up to a per-vehicle cap.

Voucher Amounts and Caps for All Vehicle Types

Vehicle Type	Fuel Type	Incremental Cost %	Voucher Amount: Vehicle Weight Class (GVWR)
			3	4	5	6	7	8
Class 4-8 Trucks	BEV / FCEV	95%	$ -	$100,000	$125,000	$145,000	$170,000	$215,000
Transit Buses	BEV / FCEV	100%	$ -	$100,000	$125,000	$150,000	$250,000	$385,000
Paratransit Buses	BEV / FCEV	100%	$ -	$100,000	$125,000	$150,000	$ -	$ -

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USDA Rural Energy for America Program (REAP) – Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems and/or to make energy efficiency improvements. Grants are available for up to 50 percent of total eligible project costs.

Funds may be used for these purchase and installation of renewable energy systems:

• Biomass (examples: biodiesel and ethanol, anaerobic digesters, and solid fuels)
• Geothermal for electric generation or direct use, wind generation, and solar generation.
• The purchase, installation and construction of energy efficiency improvements, such as: high efficiency heating, ventilation and air conditioning systems (HVAC), insulation, lighting, cooling or refrigeration units, doors and windows, electric, solar or gravity pumps for sprinkler pivots, and switching from a diesel to electric irrigation motor.

If you are a non-agricultural small business, you can confirm your business’ geographic eligibility on the map here. Businesses in parts of Brookhaven, East Hampton, Riverhead, Southold, Shelter Island and Southampton are currently eligible, though the map and definition changes, so please check the map confirm your business eligibility. Contact New York’s USDA Energy Coordinator, Gary Pereira, at gary.pereira@usda.gov or 315-570-2233 for more information.

Last updated November 12, 2024