Energy Cost Savings Program

The Energy Cost Savings Program (ECSP) helps businesses save money on energy. It can cut energy costs by up to 45 percent and natural gas costs by up to 35 percent. These savings last for eight years. After that, the savings go down by 20 percent each year for four more years.

Who can get ECSP benefits?

You can get ECSP benefits if your business:

• Moves from outside New York City or from some areas in Long Island City (Queens) and Fulton Ferry (Brooklyn) to all areas of the City other than south of 96th Street in Manhattan, Long Island City and Fulton Ferry.
• Moves from Manhattan south of the center line of 96th Street (lower Manhattan) to Manhattan north of the center line of 96th Street (upper Manhattan) or to the other four boroughs.
• Improves a property by at least 30 percent of its value and gets approval from the New York City Industrial and Commercial Abatement Program (ICAP).
• Gets approval from the New York City Industrial Development Agency (NYCIDA) or operates in a building owned by the City or Empire State Development Corporation, and improves the property by at least 10 percent of its value.

Special Eligible Premises (SEP)

Some buildings have already been improved and approved for ECSP benefits. If your business moves into one of these buildings, you might get SEP benefits for up to 12 years. If you replace a business that got SEP benefits, you can get the remaining benefits. You must meet all the program rules and apply within 120 days of signing your lease.

• Employer Identification Number (EIN): You need an EIN. If you are a sole proprietor without an EIN, you can use your Social Security number (SSN).
  Learn more about EINs.

• Industry codes: You need a Standard Industrial Classification (SIC) or North American Industry Classification System (NAICS) Code.

• Property information: Provide the property block number, lot number and square footage of the eligible facility.

• Lease or contract: Include a copy of the lease or contract of sale for the eligible facility.

• Utility bills: Submit copies of utility bills for the most recent 12 months for each account number. If 12 months are not available, provide the most recent utility bill(s).

• Account information: Provide electrical and natural gas account information, including:

  • Customer account number

  • Utility company

  • Meter addresses

  • Projected monthly electricity bill

  • Types of machinery using electricity and/or natural gas

    • If sub-metered, indicate whether there is a markup charged by the landlord. Markups cannot exceed 12 percent, per Energy Cost Savings Program (ECSP) rules.

• Tenant information: List the business name, contact person and phone number of all existing and/or anticipated future tenants and/or subtenants.

• Ownership information: Provide information on all stockholders, partners, officers and directors with an ownership interest in the business, including:

  • Name

  • Percent of ownership

  • Date of birth

  • Home address

  • SSN

  • Other business affiliations

• New York City Industrial and Commercial Abatement Program (ICAP) eligibility: If eligible through ICAP, provide:

  • ICAP application number

  • Assessed value of the building

  • Estimated construction and/or renovation costs

  • Start and end date of the construction/renovation period

    • ICAP applicants must comply with Minority and Women-owned Business Enterprise (M/WBE) requirements.

• Special Eligible Premises (SEP): If eligible as a tenant within an SEP, provide:

  • Name and address of the landlord

  • Date lease was signed

  • Date building was approved as an SEP by the Department of Small Business Services (SBS)

  • Copy of the approval notice issued by SBS

  • Copy of the ECSP Certificate of Eligibility for the building

  • Evidence that the landlord has made required improvements

• New York City Industrial Development Agency (NYCIDA) eligibility: If eligible through NYCIDA, provide:

  • Assessed values of eligible block(s) and/or lot(s)

  • Estimated construction/renovation costs

  • Start and end date of the construction/renovation period

• Relocation: If relocating, provide:

  • Copy of the lease or deed of the move-out location

  • Copy of the unsigned draft lease or unsigned draft contract of sale of the move-in location

• Renovating City or State property: Businesses or developers renovating New York City or select State-owned property must file an ECSP application before signing a lease with the City or State and before the issuance of a building permit for construction and/or renovation.

• Permit fees: A nonrefundable application fee must be sent with every application. The fees, based on gross square footage of the eligible building, are as follows:

  • Less than 10,000 square feet (sqft) = $500

  • 10,001 sqft to 25,000 sqft = $1,000

  • 25,001 sqft to 50,000 sqft = $1,250

  • 50,001 sqft to 100,000 sqft = $1,500

  • 100,001 sqft to 250,000 sqft = $2,500

  • Greater than 250,000 sqft = $5,000

• Accepted payment methods:

  • Personal check (payable to New York City Department of Small Business Services)

  • Certified check (payable to New York City Department of Small Business Services)

  • Money order (payable to New York City Department of Small Business Services)

• Energy Cost Savings Program (ECSP) credits: These credits are only for the regulated part of the electricity or gas bill. They do not cover the whole bill.

• In Manhattan, south of 96th Street: The program is only for manufacturing businesses as defined by ECSP program rules.

• Cogeneration system benefit: If your business installs a cogeneration system, you get an extra benefit: 4.44 cents per kilowatt hour.

• Capital improvements: Businesses making capital improvements must apply before getting a building permit. You must also apply before starting renovation or construction work, if a permit is not needed.

• Heating costs: The program does not cover heating costs.

• Benefits cap: Benefits are capped at $10,000 per employee each year.

• More restrictions: There may be more restrictions. Contact the Department of Small Business Services (SBS) for more details.

• Determine documentation: Review the list of prerequisites to determine what documents are required. Some documentation may not be available at the time of application.

• Complete the application: Fill out the ECSP application, available under Application Materials, according to the instructions. Provide supporting documentation as required.

• Send the application: Mail the application, along with the nonrefundable application fee, to the Department of Small Business Services (SBS).

• ICAP applicants: Submit an ECSP application to SBS after receiving an ICAP application number from the Department of Finance (DOF). Within one year of the building permit issuance (or start of renovation/construction, if no permit is required), submit the ICAP Final Application to DOF. Provide evidence of renovation and/or new construction expenditures showing improvements over 30 percent of the premises’ assessed value within four years of the final application.

• NYCIDA applicants: Submit an ECSP application to SBS before the issuance of an NYCIDA Resolution. Within three years of the building permit issuance (or start of renovation/construction, if no permit is required), provide evidence of renovation and/or new construction expenditures showing improvements over 10 percent of the premises’ assessed value to SBS.

• City- or State-owned building renovations: Submit an ECSP application to SBS before signing a lease with the City or State and before the issuance of a building permit for construction/renovation. Within three years of the building permit issuance (or start of renovation/construction, if no permit is required), provide evidence of renovation and/or new construction expenditures showing improvements over 10 percent of the premises’ assessed value to SBS.

• Relocators: If you are applying as a “relocator,” submit an ECSP application to SBS before signing a lease for the new location. After execution, submit a copy of the executed lease or contract of sale for the move-in location to SBS.

• Certificate of eligibility: If the application meets all eligibility criteria, a Certificate of Eligibility is sent to the business and utility company. This indicates the start of the benefit period for each eligible utility account. Businesses will receive benefits for up to eight years, followed by a four-year phase-out period.

• Annual compliance: Businesses receiving ECSP benefits must submit the Certificate of Continuing Business Activity/Annual Compliance Form.