Local Law 97 - What it does?

New York City’s Local Law 97 (LL97) sets annual greenhouse gas (GHG) emissions limits for most large buildings starting with the 2024 calendar year, with much stricter limits beginning in 2030 and continuing toward a 2050 carbon neutral goal. Covered buildings that exceed these limits face annual penalties of $268 per metric ton of CO₂e over their cap, plus separate fines for late or inaccurate reporting. KBKG is a national tax specialty firm with engineers, attorneys, and tax experts that has helped clients unlock over $11 billion in tax credits and incentives, including green building incentives like §179D and Cost Segregation. For NYC building owners, we focus on LL97 compliance strategy & tax incentive optimization.

Who Must Comply?

Local Law 97 generally applies to large buildings in New York City that meet specific size thresholds, including:

• • Single buildings larger than 25,000 gross square feet
  • Two or more buildings on the same tax lot totaling more than 50,000 square feet
  • Two or more buildings owned by a condominium or cooperative board totaling more than 50,000 square feet

Commonly Impacted Property Types include:

• • Multifamily rental buildings and condo/co-op properties
  • Office buildings and mixed-use developments
  • Hotel and dormitories
  • Institutional or commercial campuses exceeding the size thresholds

What’s at Stake Under Local Law 97?

Local Law 97 establishes strict reporting requirements and significant financial penalties for noncompliance. Key deadlines and enforcement details include:

Compliance Timeline

• • First compliance period: 2024–2029
  • First annual emissions report due: May 1, 2025, reporting 2024 energy usage
  • Ongoing reporting: Emissions reports are due each year on May 1

Failure to comply with Local Law 97 may result in substantial penalties, including:

• • $6 per square foot for failure to file
  • $268 per metric ton of CO₂e exceeding the building’s emissions cap (assessed annually)
  • $0.50 per square foot per month for late filing
  • Civil penalties up to $500,000 for false or misleading reporting