Only available for buildings located in the targeted area in Manhattan south of Murray Street

Click here to see which buildings already receive LMEP benefits.

The Benefit:

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

Who is Eligible:

• Commercial tenants in buildings that have been renovated in excess of 30 percent of the property's assessed value and approved for real estate tax benefits through the Industrial and Commercial Abatement Program (ICAP).
• Commercial tenants in buildings that have been renovated in excess of 20 percent of the property's assessed value where the building is seeking benefits through the New York City Industrial Development Agency (IDA).
• Commercial tenants in buildings owned by the City of New York or the Empire State Development Corporation (ESDC) and renovated in excess of 20 percent of the property's assessed value.
• Retail businesses, residential units and hotels are not eligible.

When to Apply:

• Building owners must submit an LMEP application to SBS prior to the issuance of the initial building permit for renovation (prior to the commencement of work if a building permit is not required.)
• Building owners seeking eligibility through the IDA or those managing a City or ESDC owned facility must also file an LMEP application prior to approval by the IDA Board (approval of IDA inducement resolution) or prior to signing a lease with the City or ESDC, whichever is applicable.

Requirements:

• Commercial tenants must receive electricity through the landlord's account or directly through an independent account with Con Edison.
• A tenant without a direct Con Edison account, occupying 10,000 square feet or more, must be independently sub-metered.
• A tenant occupying an entire floor of the building must be independently sub-metered.
• Building owners must provide energy credits to all eligible tenants monthly.
• All rent statements to tenants must state that the “tenant is receiving an energy credit through LMEP.”
• Building owners applying through ICAP must provide evidence to the New York City Department of Finance of investment valued in excess of 30 percent of the assessed value of the property.
• Buildings owned by the City or ESDC or building owners seeking eligibility through the IDA must provide evidence to SBS of investment valued in excess of 20 percent of the assessed value of the property.
• The landlord's charge for redistribution of energy may not exceed 12 percent of electrical costs
• For mixed-use buildings to qualify, all residential units must have independent utility accounts separate from commercial accounts.
• Commercial property owners of renovated buildings may also be eligible to receive credits for electricity used for qualifying common areas within an eligible building.
• Building owners are required to provide quarterly updates to the Department of Small Business Services (SBS) of the building's tenant and employee data.
• SBS has the right to request an energy survey to determine the percentage of eligible from ineligible energy use.

For More Information
To determine eligibility, request an application or a list of already approved buildings, please call 311 and ask for a NYC Business Solutions Center to speak with a Business Counselor.