Three Reasons to Act Now
Mandates, Money, and a Federal Deduction.
The All-Electric Buildings Act Is Now Law
As of 2026, new commercial buildings under seven stories and under 100,000 sq ft in New York State are prohibited from installing fossil-fuel equipment for heating, water heating, or cooking. Larger buildings have until January 1, 2029. This isn't a future concern — it's already in effect for new construction and applies across Long Island.
What it means for you: All-electric HVAC means heat pumps. Heat pumps require sophisticated BAS controls to perform efficiently. Buildings designed without proper automation will overpay on energy costs and fail to deliver the comfort performance tenants expect.
PSEG Business First: Up to $125,000 in 2026 Grants & Rebates
PSEG Long Island's Business First program offers business customers direct financial support in 2026: energy efficiency rebates for HVAC, heating, cooling, ventilation equipment, and controls upgrades, plus a Custom Program for larger projects with significant, verifiable savings. Free energy assessments are included. The program also provides Business FIRST Advocates — personal concierge contacts who guide you through the process.
What it means for you: Building automation and controls upgrades are among the most commonly qualifying measures, because they produce verifiable, measurable kWh reductions. MJI Energy produces the engineering documentation PSEG requires to approve applications.
Section 179D: Up to $5.81 Per Square Foot in Federal Deductions
The Section 179D Energy Efficient Commercial Buildings Deduction allows commercial property owners to deduct the cost of qualifying energy-efficient upgrades — including HVAC controls and building automation systems — from federal taxable income. The 2026 tiered rate reaches up to $5.81/sq ft for projects meeting prevailing wage and apprenticeship requirements. A 50,000 sq ft building could see over $290,000 in deductions from a qualifying controls project.
What it means for you: Combined with PSEG rebates, Section 179D can dramatically reduce the net cost of a controls upgrade — often to a point where the project pays back in under 3 years. Consult your tax advisor; MJI Energy provides the energy savings documentation the deduction requires.
The New Energy Code Makes Building Controls More Important Than Ever
The 2025 New York State Energy Conservation Construction Code shifts focus from individual component efficiency to total-system performance — requiring design teams to demonstrate that the entire HVAC system, including controls, fans, and pumps, meets new performance targets roughly 10% more stringent than prior standards.
The “Total System Performance Ratio” is now a key metric for new commercial construction across New York State. Achieving it requires the kind of coordinated BAS programming and commissioning that MJI Energy has delivered for 30 years.
All Available Programs
New York & Long Island Program Landscape
Most buildings qualify for multiple programs simultaneously. PSEG rebates, Con Edison incentives, NYSERDA support, and Section 179D deductions can all be stacked — the key is understanding which measures qualify for which programs, and having the engineering documentation to back each claim.
Why Controls Qualify
How Building Automation Qualifies for Rebates
Utility rebate programs pay per kilowatt-hour saved. Building automation systems — when properly commissioned and documented — produce measurable, verifiable reductions in kWh consumption, which is exactly what utilities reward.
HVAC scheduling optimization, demand-controlled ventilation, variable frequency drive controls, and automated lighting all qualify under PSEG's programs because each measure has an established, calculable impact on energy consumption.
Typical rebate ranges for building automation projects run from $15,000 to $125,000 or more, depending on building size, existing conditions, and scope of work. Stack Section 179D on top, and the net project cost frequently drops below 50% of the sticker price.
Our Process
What MJI Energy Handles for You
Rebate programs are valuable but paperwork-heavy. We handle the process end-to-end — from initial assessment through post-installation verification — so you can focus on your building.