The Benefits

• Reduce regulated electricity costs up to 45 percent and regulated natural gas costs up to 35 percent.
• Benefits last for eight years, followed by a four-year phase-out.

Who is Eligible?

• Businesses relocating to, or within, New York City.
• Businesses in New York City that are investing in their property.
• Retail businesses, hotels, personal-service providers, and public-benefit corporations are not eligible.

When to Apply

• For a relocating business, apply BEFORE the lease or contract of sale to the new location is signed.
• For a business making a capital improvement to their facility, apply generally BEFORE the capital improvement is made.

Requirements

• Eligible businesses can be eligible by relocating, making capital improvements to their building or operating within a qualified building that has already undergone renovation or construction.
• Businesses seeking benefits through 'relocation' must be moving from outside of the City of New York, or from designated areas of Fulton Ferry (Bk), Long Island City (Q) or Manhattan below 96th Street into most areas of the City.
• Businesses applying in connection to a capital improvement must either be financing their improvement through the Industrial Development Agency (IDA), or be seeking benefits through the New York City Industrial and Commercial Abatement Program (ICAP).
• Businesses applying in connection with the IDA must apply prior to execution of IDA inducement resolution approving the IDA project and make capital improvements to the property.
• Businesses renovating New York City or select State owned property must file an application prior to signing a lease with the City or State and before the issuance of a building permit for construction/renovation.
• Businesses applying in connection to a capital improvement for their property must improve their property by a minimum required expenditure (MRE) of at least 10 percent of the property's assessed value; in the case of ICAP, the MRE is 30% of assessed value.
• Businesses that will be tenants in buildings that have already undergone improvements to qualify for ECSP can also receive benefits. Tenants must apply for benefits within 120 days of signing a lease to the approved site, or if an existing tenant, 120 days from the time the building is approved as a "Special Eligible Premise."
• Energy must be directly metered or sub-metered to the eligible business.
• Transmission and distribution of energy must be provided through a utility regulated by the State of New York, and if sub-metered, energy cannot be marked up more than 12 percent.
• Annual benefits can not exceed $10,000 per employee.

Example One

A medium-sized apparel manufacturer is relocating from Manhattan south of 96th Street to a 10,000 square-foot space in the Astoria section of Queens. Its total annual electric bill is $17,700.

• Through ECSP, the business saves $3,600 annually on its baseline regulated delivery cost of $8,000.
• In today’s dollars, savings from the program over 12 years could amount to over $25,000.

Example Two

A distribution company invests over $250,000 (more than 10 percent of the property’s assessed value) to renovate its 25,000 square-foot building.

• Through ECSP, the business saves $2,500 annually on its baseline regulated delivery cost of $6,000. (The total electric bill for the company is $12,000.)
• In today’s dollars, savings from the program over 12 years could be worth over $17,000.

Frequently Asked Questions

Q. Are benefits applied to my entire Utility Bill?
A. No, ECSP credits are only applied against the regulated transmission and delivery portion of your electric and/or natural gas bill.

Q. Do all energy uses qualify for credit?
A. No. Uses such as space heating are ineligible.

Q. What is a Special Eligible Premise (SEP)?
A. A Special Eligible Premise is a building which has been improved through either new construction or renovation, and is either owned by the City of New York or Empire State Development Corporation (ESDC), approved for tax benefits through the New York City Industrial and Commercial Abatement Program (ICAP), or approved for financial assistance through the Industrial Development Agency (IDA).

Q. Can benefits be transferred?
A. Benefits can only be transferred from one business to another in a Special Eligible Premise (SEP). The replacement business must meet all program eligibility criteria and receive only the remaining years left on the benefit schedule for the original business approved to receive benefits at the site.

Q. Do future tenants relocating to an SEP need to file a separate ECSP application?
A. Yes. New tenants must file an application within 120 days of signing a lease to the building; existing tenants must file within 120 days of the building being approved as an SEP by the Department of Small Business Services.

Q. If I am moving from a targeted move-out area and renovating my building through ICAP, which is the preferred method of applying to the program?
A. Applying as an ICAP or IDA applicant is preferable. By doing so, the building can be designated as a "Special Eligible Premises" (SEP) and confer ECSP benefits to future qualified tenants.

Q. If I apply for ECSP benefits through ICAP, must I also submit my ECSP application to SBS prior to the issuance of a building permit for qualifying work?
A. No. However, you must apply for ICAP benefits before the issuance of building permits for qualifying work.

Download the ECSP application (PDF) for complete list of eligibility requirements and filing deadlines.