New York State adopts sweeping building code changes requiring electric systems in most new construction
In a decision that will impact nearly every construction project across the Empire State, New York’s Building Code Council has officially codified the All-Electric Buildings Act, mandating that most new buildings use electric systems for heating, hot water, and cooking. The new rules go into effect starting January 1, 2026, with broader coverage coming by the end of 2028.
New York City, the largest U.S. commercial real estate market, already enforces Local Law 154, which places strict carbon emission limits on new buildings. Implementation began last year and will continue in phases, effectively requiring most new construction to use electric power.
What’s in the Law?
The Act prohibits fossil fuel systems in most new residential and commercial buildings under seven stories, eliminating natural gas hookups and requiring electric heat pumps and appliances instead. Larger buildings must follow suit by December 31, 2028.
There are carveouts for certain essential facilities (like hospitals, manufacturing labs, and restaurants) as well as any buildings where electric grid upgrades would cause unreasonable delays.
But make no mistake: the default for new construction in New York is now all-electric.
“New York is setting a national precedent,” said Sarah Lazarovic, head of communications at Rewiring America. “The All-Electric Building Act means safer, healthier homes and buildings—and it’s a big win for our climate and our communities.”
Contractors React
According to reporting from WGRZ in Buffalo, the building community is already adapting with questions. “It’s going to change the way we do things,” said Bryan Gasiewicz, COO of Natale Builders. “You’re going to have to learn new products, get different electricians involved. It’s going to change how we do business.”
That learning curve is real. Electric systems bring new design considerations (especially in cold-weather climates) but also offer long-term cost savings and better energy performance. And with federal and state incentives in place, many developers may find the transition easier than expected.
Resources for affordable energy upgrades
While New Yorkers are not required to go All Electric in their current homes, programs are already in place to assist families who want to reduce their carbon footprint. See if you may qualify:
- EmPower NY provides no-cost energy efficiency solutions to income-eligible New Yorkers, helping nearly 160,000 families to date. Renters and homeowners both qualify for these free upgrades.
- The federal Inflation Reduction Act includes tax credits and rebates that can help save you thousands on energy-efficient home renovations, appliances and vehicles purchased this year. This includes up to $7,500 in tax credits for electric vehicles and charging equipment.
- The Residential Clean Energy Credit includes eligible rooftop solar panels, wind turbines, geothermal heat pumps and standalone batteries to store electricity. If you choose to install any of these in your home, you may qualify for a 30% tax credit. Qualifying expenses include labor, permits, and inspection, with no cap on the total purchase price.
Ice Air Can Help
New York’s law is a direct response to the state’s climate goals under the Climate Leadership and Community Protection Act (CLCPA), which targets an 85% reduction in greenhouse gas emissions by 2050.
Ice Air’s Tom Glass, Director of Sales and Marketing, points out that buildings account for nearly one-third of the state’s emissions and fossil fuel-burning systems are a major contributor. By going all-electric, the state hopes to curb emissions, reduce indoor air pollution, and eliminate future reliance on gas infrastructure.
“At Ice Air, we’ve been planning for this shift for years.” Glass notes. “Our electrification-ready HVAC systems, including cold-climate heat pumps and packaged terminal heat pumps (PTHPs), are designed to meet these new building codes without compromising performance.”
Check out our strategic tools design to help building professionals meet evolving regulations and energy goals like the Ask Glen LL97 Compliance AI Bot and Emodeler Tool.
Whether designing for Local Law 97 or preparing for the All-Electric Act, Ice Air is here to help you build smarter, greener, and more resilient buildings.
Key Dates at a Glance
| Milestone | Details |
| January 1, 2026 | Electric-only mandate applies to most new buildings under 7 stories |
| December 31, 2028 | All new construction in NY must comply (with limited exemptions) |
| Ongoing | Incentives available for electrification; Ice Air products already qualify |
If you’re a developer, architect, or engineer working in New York, 2026 is closer than you think. Electrification is no longer a fringe topic—it’s the new normal.
Visit our Electrification Hub to learn how Ice Air can help your next project get ahead of the curve.