New York’s All-Electric Buildings Act bans fossil-fuel heating, hot water, cooking, and clothes-drying equipment in most new construction, phased in by building size starting with smaller buildings and extending to all new buildings by the end of 2028. The law was enacted as Part RR of Chapter 56 of the Laws of 2023 and amends the state’s Energy Conservation Construction Code. Its first compliance deadline, originally set for the end of 2025, has been suspended while a federal preemption challenge works through the U.S. Court of Appeals for the Second Circuit.1New York State Senate. Senator Gallivan Says Delay in States All-Electric Building Mandate Does Not Go Far Enough
Is the Law in Effect Right Now?
No. In November 2025, the New York Secretary of State agreed with the plaintiffs in Mulhern Gas Co. v. Mosley to suspend the January 1, 2026 effective date while the case is on appeal. The trade groups and labor unions behind the suit argue that the federal Energy Policy and Conservation Act preempts the state law. The district court sided with New York. The Second Circuit heard oral arguments on January 30, 2026, and the suspension continues until that court rules and through any petition for Supreme Court review.1New York State Senate. Senator Gallivan Says Delay in States All-Electric Building Mandate Does Not Go Far Enough
Until the courts resolve the preemption question, no building is required to comply. A developer filing for a permit today does not have to submit all-electric plans. Anyone with a long construction timeline should still track the case, because enforcement can resume once the courts rule.
What the Law Prohibits
Once enforcement begins, covered new construction cannot include any fossil-fuel equipment or building systems. That means no gas-fired boilers, furnaces, or water heaters, no natural gas piping for cooking ranges or ovens, and no propane or oil hookups of any kind. Every system that provides space heating, hot water, cooking capability, or clothes drying must run on electricity.2New York State Senate. New York Energy Law 11-104 – State Energy Conservation Construction Code
Common replacements are heat pumps for space heating, electric resistance or heat pump water heaters for hot water, and induction or standard electric stovetops. The electrical panel and internal wiring in a covered building must be sized from the start to handle these high-draw appliances.
Which Buildings Are Covered, and When
The rollout is phased by building size, and the triggering event is the issuance of the initial construction permit. A project permitted before the applicable deadline stays outside the mandate even if construction runs long.
- December 31, 2025 (currently suspended): The ban applies to new buildings seven stories or fewer, except commercial or industrial buildings with more than 100,000 square feet of conditioned floor area.
- December 31, 2028: The ban extends to all new buildings regardless of height or size, including the large commercial and industrial buildings that got the carve-out in the first phase.
The 100,000-square-foot carve-out catches people off guard. A warehouse, factory, or commercial complex over that threshold gets the later deadline even if it is only a few stories tall.2New York State Senate. New York Energy Law 11-104 – State Energy Conservation Construction Code
Existing Buildings Are Not Affected
The Act applies only to new construction. If a building existed before the applicable deadline, there is no obligation to rip out gas systems or convert to electric. The protection covers repairs, renovations, additions, changes of occupancy, and the continued use of existing fossil-fuel appliances, including gas stoves and furnaces. Homeowners and commercial landlords are not required to retrofit under this law.3New York State Department of State. New York State Energy Law 11-104 – Part RR of Chapter 56 of the Laws of 2023
Exemptions for Specific Uses
Even inside the compliance window, the law leaves room for fossil-fuel equipment where electric alternatives are impractical or where safety demands a backup. Exempt categories include:
- Emergency and standby power, including fossil-fuel generators for use during outages.
- Manufactured homes governed by federal HUD standards.
- Commercial food establishments and restaurant kitchens that need high-intensity gas heat for cooking.
- Hospitals and medical facilities using gas-based systems for sterilization, research, and other medical processes.
- Laboratories that need consistent high-temperature heat sources.
- Manufacturing plants, car washes, laundromats, crematoria, agricultural buildings, fuel cell systems, and critical infrastructure such as wastewater treatment and water pumping facilities.
If a project houses one of these operations, the gas prohibition may not apply to the portion of the building serving that function.2New York State Senate. New York Energy Law 11-104 – State Energy Conservation Construction Code
An exemption does not let a developer skip electrification entirely. Any exempt portion of a new building must be built “electrification ready,” with enough space, drainage, wiring, bus bar capacity, and circuit protection to support a future electric replacement. Fossil-fuel use in exempt buildings is limited to the specific system and area that actually needs it. A hospital with an exempt sterilization wing cannot run the entire building on gas. Cost alone is not a sufficient basis to claim a broader infeasibility exemption.2New York State Senate. New York Energy Law 11-104 – State Energy Conservation Construction Code
Grid Capacity Waiver
A separate waiver covers projects where the local electrical grid cannot reasonably support a new all-electric building. If the required electrical upgrades would take substantially longer for an all-electric building than for a mixed-fuel one, the project may qualify. The New York Public Service Commission determines what is reasonable on a case-by-case basis. The proposed standard would trigger the waiver when the upgrades needed for an all-electric building would take 18 months longer than those for a mixed-fuel building. Local utilities are expected to estimate upgrade timelines when developers request service.2New York State Senate. New York Energy Law 11-104 – State Energy Conservation Construction Code
Rebates and Tax Credits for Going Electric
Several programs reduce the cost of electric heating and appliance systems, whether a developer is building to the new standard or a homeowner is converting voluntarily.
New York State Clean Heat Program
Participating utilities such as NYSEG offer rebates for heat pump installations: up to $10,000 for air-source heat pumps, up to $18,000 for ground-source (geothermal) heat pumps, and up to $2,500 for heat pump water heaters.4NYSEG. NYS Clean Heat Rebate Program
Income-Based Federal Rebates
The Inflation Reduction Act’s Home Electrification Appliance Rebate program runs in New York through NYSERDA’s EmPower+ program. Amounts scale with household income relative to area median income. Eligible upgrades include heat pumps (up to $8,000), electrical panel upgrades (up to $4,000), and electrical wiring upgrades (up to $2,500). The rebates generally require pre-approval before work begins.5New York State Energy Research and Development Authority. Inflation Reduction Act Homeowners
Federal Tax Credit for Geothermal
The federal residential clean energy credit under Section 25D of the Internal Revenue Code gives a 30 percent tax credit on the full cost of geothermal heat pump equipment and installation. It applies to primary and secondary residences, including new construction, and is claimed on IRS Form 5695. The separate Section 25C credit for air-source heat pumps expired at the end of 2025 and is not available for equipment installed in 2026.6Office of the Law Revision Counsel. 26 USC 25D – Residential Clean Energy Credit
How the Rules Get Enforced
Compliance runs through the existing building permit and inspection process. Municipal building departments review plans before issuing permits, and submissions that include prohibited fossil-fuel systems should be rejected until revised. Local inspectors then verify that installed heating, hot water, and cooking systems are exclusively electric before issuing a certificate of occupancy. A building that fails this inspection cannot legally house tenants or open for business. The state energy code enforcement framework also authorizes daily fines and legal action for willful noncompliance.3New York State Department of State. New York State Energy Law 11-104 – Part RR of Chapter 56 of the Laws of 2023
None of this enforcement machinery is active for the all-electric provisions right now. The state has agreed not to enforce the ban until the Second Circuit rules in Mulhern Gas Co. v. Mosley. Projects already in the pipeline should still be designed with the possibility of resumed enforcement in mind, because the suspension can lift on short notice.1New York State Senate. Senator Gallivan Says Delay in States All-Electric Building Mandate Does Not Go Far Enough